Under the economic entity concept, the net assets of the subsidiary are included in the consolidated financial

Question:

Under the economic entity concept, the net assets of the subsidiary are included in the consolidated at the total fair value that is implied by the price paid by the parent company for its controlling interest. What practical or conceptual problems do you see in this approach to valuation?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...