Which of the Following Is Required When Preparing a Consolidated

question 39

Multiple Choice

Which of the following is required when preparing a consolidated balance sheet on the date of the formation of a subsidiary by its parent company?

• A) The assets and liabilities of the subsidiary must be revalued to fair value.
• B) The goodwill from the business combination must be calculated.
• C) The parent's investment account must be eliminated against the subsidiary's share capital.
• D) The parent's investment account must be eliminated against the subsidiary's retained earnings.