Subsidiaries may use local GAAP, but must adjust to IFRS/US GAAP for consolidated financial statements. IFRS/US GAAP require uniform accounting policies, adjustments to subsidiary statements to ensure conformity. This may result in deferred tax recognition due to temporary differences.
Gaap
Mastering the art of consolidated financial statements
- Difference between various types of investments: subsidiaries, joint arrangements, and associates. Learn how they are accounted for under IFRS and US GAAP. Difference between various types of investments: subsidiaries, joint arrangements, and associates. Learn how they are accounted for under IFRS and US GAAP.