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BorsodChem Rt is a company incorporated under Hungarian law. Its accounts are IAS compliant. It…

BorsodChem Rt is a company incorporated under Hungarian law. Its accounts are IAS compliant. It stated in its 1999 accounts: Basis of consolidation The accompanying consolidated financial statements include the accounts of all of the companies comprising the BorsodChem Group except certain subsidiaries which are immaterial individually and in aggregate.

Required: Discuss what BorsodChem would take into account when deciding that a subsidiary was immaterial.

 

 

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