IFRS 10 requires that control is the key criteria in determining whether an entity will prepare a consolidated financial statements or not. The standard prescribes that in order for an investor with decision-making rights to have control, it must act as a principal and not an agent (Deloitte, 2020).

a. Briefly discuss the above statement and outline the structure of the

assignment in the Introduction section. (5 Marks).

b. Do you agree that the control is an essential criteria for preparing

consolidated financial statements? Discuss. (10 Marks).

c. Do you think that the agent has the ability to prepare consolidated financial

statement? Justify your answer. (12 Marks).

Question: Summarise the above questions (a-c) and provide your own remarks in the

Conclusion section. (5 Marks).