Why are the consolidated Financial Statements of a Tax Group prepared by aggregating the standalone Financial Statements of the Parent Company and each Subsidiary within the Group?
The preparation of consolidated Financial Statements, following the International Financial Reporting Standards (IFRS), involves combining the standalone Financial Statements of the Parent Company and each Subsidiary within the Group.
This approach is adopted to eliminate any disparities in the calculation of Corporate Taxable Income for a group that has chosen to be a Tax Group, as opposed to one that has not. Consequently, the aggregation of standalone Financial Statements ensures consistency in the Taxable Income calculation.
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