The financial statements consolidation according to the financial accounting system and their compatibility with the requirements of the entity theory -Saidal group case-

Abstract

This study aims to clarify the extent of compliance with the requirements of the entity theory when preparing the consolidated financial statements according to the financial accounting system.

The study concluded that the theory followed in the preparation of the consolidated financial statements is a mixture between the entity theory in accounting disclosure requirements and accounting treatments for inter-operations and the ownership theory in the process of merging assets of subsidiaries and joint arrangements based on book values.