Question

Which of the following statements is not a limitation of consolidated financial statements? a) The group...

Which of the following statements is not a limitation of consolidated financial statements?

a) The group is only an economic entity, not a legal entity as recognised under the Corporations Act.

b) Details about individual subsidiaries may be masked when aggregated with other subsidiaries within the group.

c) The group does not pay income tax, only individual entities within the group do.

d) Creditors can only have claims against individual entities within the group, not the group as a whole.

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Answer #1

A) it is main limitations of co consolidated financial statements as per Corporation Act the group was decided as economic activity not a legal entity so this is main limitations

B) details about individual subsidiaries may be masked when aggregated with other subsidiaries group . so this is main limitations

C) The group does not pay income tax only individuals can do within the group. So this is correct answer it is not a limitations

D) creditors can claim on individual entities within the group not the group as whole. This is main limitations

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