On the date of formation of a 100% owned subsidiary by the parent, which of the following statements pertaining to consolidated financial statements is TRUE? It is possible to prepare consolidated financial statements that include all the assets and liabilities of the subsidiary. Consolidated financial statements are difficult to prepare because the assets and liabilities of the subsidiary have yet to be determined. Consolidation requires the elimination of the parent's investment account against the subsidiary's share capital. Consolidation will not be required since a new legal entity will have been formed