In phase A of the conceptual framework project, the boards propose to adopt the entity perspective – what does this mean for the parent company approach to consolidated financial statements?
The boards’ preliminary view is that consolidated financial statements should be presented from the perspective of the group reporting entity—not from the perspective of the parent company’s shareholders. However, that does not mean that the information needs of the parent company’s shareholders are ignored under the entity perspective. The boards may later require extra information that is primarily directed to this group of capital providers in projects on individual standards.
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