Financial disclosures required regarding acquisitions require that
A)reader's are able to relate the investment category on the SFP to the investment income reported on the income statement.
B)reader's are able to understand the effects of the accounting methods that are used for different categories of investments.
C)major acquisition dates are disclosed, as the SFP contains all assest, and the P&L only contains income earned by the subsidiary after it was acquired.
D)all of these describe financial disclosures required regarding acquisitions.

Question

Quizplus · Accepted Answer

All of these options are requirements for financial disclosures regarding acquisitions. Readers need to be able to understand how the investment category on the balance sheet relates to the investment income reported on the income statement, and also need to understand the accounting methods used for different categories of investments. Additionally, major acquisition dates must be disclosed because the balance sheet includes all assets, but the income statement only includes income earned by the subsidiary after it was acquired. Therefore, all of these options are necessary for accurate financial disclosures regarding acquisitions.

Financial Disclosures Required Regarding Acquisitions Require That