Exercise 1 (15 Points) a) Explain the difference between single financial statements and group financial statements. What is the function of consolidated financial statements and who are the primary users? b) Outline in your own words the legal requirements for preparing consolidated financial statements in Germany. Which companies are required to prepare consolidated financial statements and which accounting standard is to be used? What are the components of a complete set of consolidated financial statements? c) X AG has acquired shares in L AG. Outline how the investment in the shares of L AG is supposed to be treated by X AG depending on the stake of the equity investment.