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Would it be possible for an entity to be required to consolidate another entity in which...

Would it be possible for an entity to be required to consolidate another entity in which it has no equity interest?

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Answer #1

Consolidated financial statements are those financial statements which are prepared together of two or more entities. These statements includes all the affairs of both the entities which are required to be presented in the financial statements.
It can also be said that the consolidated financial statements are prepared of the parent and all its subsidiaries together as a single entity and it contains all the group of assets, liabilities, income and expenses, etc.

Now the question arises that " Would it be possible for an entity to be required to consolidate another entity in which it has no equity interest".

It can be said that it would not be possible to consolidate such entity, as for consolidation as per IFRS rules a specific interest in another entity is must required.
Iy can be in form of parent and its subsidiaries.

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