- FII 24 I, III and VI Question 3 Complete Which of the following statements about consolidation is not correct? Marked out of 1.00 Retained earnings of the acquiree is not required to be recognized by the acquirer at acquisition date. P Flag question The elimination entry to eliminate pre-acquisition shareholders' funds is made each time the consolidation is performed in order to adjust the carrying value of the controlled entity's non-current assets to their fair value. g Goodwill arising on consolidation will be recorded. If the controlled entity was purchased at a discount the excess is recognized as a gain in the profit or loss on the acquisition date. The parent entity concept includes all assets and liabilities of the parent and its subsidiaries in the consolidated accounts. The non controlling interest is treated as a liability of the group. ents e- Question 4 Complete Marked out of The following information relates to Sevenel Ltd for the period ended 31 December 2020. 1.00