Question
At balance date, Company A has 40% of the voting rights in Company B. In addition Company A holds potential voting rights in Company B
At balance date, Company A has 40% of the voting rights in Company B. In addition Company A holds potential voting rights in Company B amounting to 6% that are currently exercisable, and a further 9% of voting rights in Company B that can be exercised in two years' time. Which of the following statements is correct?
Consolidated financial statements must be prepared for Company A and B in the current year. | ||
Consolidated financial statements need not be prepared for Company A and B for the current year. | ||
Consolidated financial statements must be prepared as Company A controls Company B at balance date. | ||
Consolidated financial statements must be prepared as Company A has more than half of the voting rights in Company B at balance date. |
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