Interested-parties theory


 

Similarly to the one-entity theory, interested-parties theory views the consolidated financial statement as a statement of an entity consisting of multiple independent companies. In contrast to the one-entity theory, it has a narrower view of the managerial unit by showing only those parts of the assets and profits which are directly assigned to the holding company. The consolidated financial statement is therefore viewed only as an expanded individual statement of the holding company.

 

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