All of the above 9. Consolidated financial statements are presented on the basis that the companies within the group are treated as if they are a single economic entity Which TWO of the following are requirements of preparing consolidated financial statements? All subsidiaries must adopt the accounting policies of the parent in their individual financial statements . Subsidiaries with activities which are substantially different to the activities of other members of the group should not be consolidated re All assets and liabilities of subsidiaries should be included at fair value rd. Unrealized profits from the group must be eliminated from the consolidated financial statements 10. On 1 January 2019, Big acquired 80% of the equity share capital of Small Extracts from the statements of financial position for the year ended 31 December 2019 are Big Small NS 000 NS 000 Receivables 64 600 38 000 At 31 December 2019, Small recorded a payable to Big of NS 3 million which did not agree to Big's receivables balance due to NS 1 million cash in transit. Required What is the value of receivables in the consolidated statement of financial position as at 31 December 2019 Answer: 11. Which of the following is not a condition which must be met for the parent to be exempt from producing consolidated financial statements? The activities of the subsidiary are significantly different to the rest of the group and consolidate them would prejudice the overall group position Cb The ultimate parent produces consolidated financial statements that comply with IFRS standards and are publicly available Cc The parents debt or equity instruments are not traded in a public market Ed The parent itself is a wholly owned subsidiary or a partially owned subsidiary whose owners do not object to the parent not producing consolidated financial statements