asked 98.9k views
3 votes
The rules for consolidated reporting for financial statement purposes are the same as the rules for consolidated reporting for tax purposes.

a) True
b) False

asked
User Joeyhoer
by
8.8k points

1 Answer

5 votes

Final answer:

The statement is False. Consolidated reporting for financial statement purposes and consolidated reporting for tax purposes are not the same.

Step-by-step explanation:

The statement that the rules for consolidated reporting for financial statement purposes are the same as the rules for consolidated reporting for tax purposes is False.

Consolidated reporting for financial statement purposes refers to combining the financial statements of two or more companies into a single set of financial statements. It follows accounting standards such as Generally Accepted Accounting Principles (GAAP).

Consolidated reporting for tax purposes, on the other hand, involves combining the taxable income and deductions of multiple companies within a group for tax reporting purposes. This follows tax laws and regulations, which may have different rules and requirements compared to financial reporting standards.

answered
User Anandhu
by
7.8k points
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