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How consolidation mitigates financial report abuse by parent

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Reference no: EM132669169

Problem 1: NZ IFRS 10 defines the parent-subsidiary relationship in terms of control rather than majority ownership. Write down one advantage and one disadvantage of control as the basis for parent-subsidiary relationship.

Problem 2: Give an example to illustrate how consolidation mitigates financial reporting abuses by the parent.

Reference no: EM132669169

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