7. Brock Inc decides that it will be selling is subsidiary Breck Inc in a few years Brock has excluded Brecks activities from its 31 consolidate financial results 32 Principle Qualitative Charactertic

32. **Principle**. Brock Inc.'s decision to exclude Breck Inc.'s activities from its consolidated financial results because it will be sold in a few years reflects the **control principle**. Consolidated financial statements are meant to reflect the financial position and performance of a parent company and its controlled subsidiaries *as a single economic entity*. If Brock Inc. plans to sell Breck Inc., it will no longer control Breck Inc. in the future, and therefore, it's appropriate to exclude Breck Inc. from consolidation.<br />