Question
Which of the following statements about consolidation is not correct? A. goodwill arising on consolidation will be recorded. if the controlled entity was purchased at
Which of the following statements about consolidation is not correct? A. 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. B. retained earnings of the acquire is not required to be recognized by the acquirer at acquisition date. the parent entity concept includes all assets and liabilities of the parent and its subsidiaries in the consolidated accounts. C. the non controlling interest is treated as a liability of the group. D. 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 noncurrent assets to their fair value.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started