alleryStart learning →A statutory consolidation results in what?
AA new company; no old one survives
BAcquired company is liquidated
CBoth companies continue to exist
DParent holds exactly 40 percent
Answer & Solution
Correct answer: A. A new company; no old one survives
In a statutory consolidation a brand new company is formed and all the earlier companies cease to exist.
Keep practising Consolidated Financial Statement
Browse all Consolidated Financial Statement questions for CA Final, or explore more Auditing topics.
Related questions
Which expenditure is generally immaterial?What is the objective of an audit of financial statements?For the UK small-group exemption, how many of the three tests must be met?Under UK Companies Act 2006 s.399, who must prepare group accounts?What does a holding company usually not do itself?What is the primary business of a holding company?Can a parent company be smaller than its subsidiary?What is a second-tier subsidiary?