Which of the following observations is NOT consistent with the use of push-down accounting?
A)The revaluation capital account is part of the subsidiary's stockholders' equity.
B)No differential arises in the consolidation process.
C)Revaluation Capital account is eliminated in preparing consolidated statements.
D)Eliminating entries related to the differential are needed in the worksheets.

Question

Quizplus · Accepted Answer

Push-down accounting eliminates the need for differential-related eliminating entries in consolidation because the subsidiary's books already reflect the fair value adjustments.

Which of the Following Observations Is NOT Consistent with the Use