i) Consolidated Financial Statements
Consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.

(1 mark)

ii) Conditions for Exemption from Presenting Consolidated Financial Statements:
A parent need not present consolidated financial statements if it meets all the following conditions:

• It is a wholly-owned subsidiary or is a partially-owned subsidiary of another entity and all its other owners, including those not otherwise entitled to vote, have been informed about and do not object to, the parent not presenting consolidated financial statements.
• Its debt or equity instruments are not traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets).
• It did not file, nor is it in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market.
• Its ultimate or any intermediate parent produces consolidated financial statements that are available for public use and comply with IFRSs

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(4 points @ 1 mark each = 4 marks)