As controller of the Parent Company who is ready to prepare financial statements, you have the following information You, the Parent Company, have 141 subsidiaries or investees 80 of these subsidiaries are located in the United States and are 100 owned and controlled by you (the Parent ) 20 of these companies are located in the United States but you only own 30 of the company 40 of these subsidiaries are 100 owned and are located in the European Union, which uses IFRS as the accounting framework 38 of these 40 subsidiaries use the Euro to denominate their financial statements 2 of the 40 subsidiaries do not use the Euro one uses the Polish Zoty PLN and the other uses the Danish krone to denominate financial statements One 100 owned subsidiary is in Switzerland which allows IFRS or U S GAAP to be used as the accounting framework Financial statements are denominated in the Swiss Franc REQUIRED What are the steps you would use (the Parent Company) to prepare consolidated financial statements for the parent company, the 121 100 owned subsidiaries, and the 20 companies in which you are heavily invested Consider IFRS, foreign currency NCI, and anything else you think is pertinent

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Posted on Sep 10, 2024

As controller of the Parent Company who is ready to prepare financial statements, you have the following information: You, the Parent Company, have 141 subsidiaries

As controller of the Parent Company who is ready to prepare financial statements, you have the following information:

You, the Parent Company, have 141 subsidiaries or investees.
80 of these subsidiaries are located in the United States and are 100% owned and controlled by you (the Parent.)
20 of these companies are located in the United States but you only own 30% of the company.
40 of these subsidiaries are 100% owned and are located in the European Union, which uses IFRS as the accounting framework. 38 of these 40 subsidiaries use the Euro to denominate their financial statements; 2 of the 40 subsidiaries do not use the Euro; one uses the Polish Zoty PLN and the other uses the Danish krone to denominate financial statements.
One 100% owned subsidiary is in Switzerland which allows IFRS or U.S. GAAP to be used as the accounting framework. Financial statements are denominated in the Swiss Franc.

REQUIRED: What are the steps you would use (the Parent Company) to prepare consolidated financial statements for the parent company, the 121 100% owned subsidiaries, and the 20 companies in which you are heavily invested. [Consider IFRS, foreign currency; NCI, and anything else you think is pertinent.]