How are accounts involving more than one subsidiary consolidated?
A)Sequentially for each company,calculate the goodwill,revalue the net assets,then consolidate the accounts.
B)Sequentially for each company,calculate the goodwill,then consolidate the accounts.
C)Sequentially for each company,revalue the assets of the subsidiary to fair value then consolidate the accounts.
D)Sequentially for each company,add the total assets of the combination and then the liabilities then calculate the goodwill.

Question

Quizplus · Accepted Answer

Sequentially for each company, the process involves calculating the goodwill, revaluing the net assets to their fair values, and then consolidating the accounts. This ensures that the consolidated financial statements reflect the true economic value of the acquired entities.

How Are Accounts Involving More Than One Subsidiary Consolidated