Which of the following statements regarding consolidated financial statements at the date of acquistion is FALSE?
A)At the day of acquisition, there is a need to prepare a consolidated statement of income.
B)Regarding the equity accounts, only the parent's balances are carried into the consolidated statement of financial position.
C)At acquisition date, all the equity of the subsidiary is pre-acquisition and eliminated.
D)The assets and liabilities of the subsidiary are carried forward into the consolidated statement of financial position at fair value.

Question

Quizplus · Accepted Answer

At the date of acquisition, there is no need to prepare a consolidated statement of income as the subsidiary's results are only included in the consolidated statement of income from the date of acquisition onwards. The other options are true statements regarding the preparation of consolidated financial statements at the date of acquisition.

Which of the Following Statements Regarding Consolidated Financial Statements at the Date