When Group Members Do Not Apply the Same Accounting Methods,the

question 47

Multiple Choice

When group members do not apply the same accounting methods,the consolidation process requires which of the following to be done?

• A) All group members must change their accounting policies to be consistent.
• B) Adjustments must be made on consolidation to remove the impacts of the different policies.
• C) Two sets of consolidated accounts need to be presenteD. the first done on the basis of the inconsistent policies; the second done after the subsidiaries have adjusted their policies in line with the parent.
• D) A choice is to be made by the parent's management between any of the three other options listed.
• E) Nothing needs to be done.

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Pertains to information or skills acquired through structured learning or education systems.

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The ability to understand the limits of our knowledge and adapt that knowledge to an unfamiliar context.