s of a subsidiary are consolidated using fair values at the date of prior to the acquisition date are disregarded in the preparation of iccounts g interests in net assets and profits after tax are disclosed isolidated from the date control is acquired by the parent the income statements of Krag Co and its subsidiary Lag Co. cember 209Krag Co sold goods which originally cost $10000 0 Lag Co still had one quarter of these goods in inventory at 31 owed Krag Co \$2 000000 in respect of these goods s of a subsidiary are consolidated using fair values at the date of prior to the acquisition date are disregarded in the preparation of iccounts g interests in net assets and profits after tax are disclosed isolidated from the date control is acquired by the parent the income statements of Krag Co and its subsidiary Lag Co. cember 209Krag Co sold goods which originally cost $10000 0 Lag Co still had one quarter of these goods in inventory at 31 owed Krag Co \$2 000000 in respect of these goods