The Use of the Services of a Specialist from a Parent

question 46

Multiple Choice

The use of the services of a specialist from a parent to a subsidiary for a short period of time within a year requires the following treatment in the consolidated statements:

• A)Realized profit need to be calculated in the consolidation process.
• B)The consolidation adjustments do not affect the group's accounts
• C)Adjustments are required to adjust the specialist's salary
• D)Special income tax adjustments are required in accordance with policies of Canada Revenue Agency.

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Definitions:

Subordinate

A person who is lower in rank or position, often subjected to the authority or control of another within an organization or hierarchy.

Massive Waves

Large and powerful ocean waves often resulting from underwater earthquakes, landslides, or other disturbances.

Immigration

The action of coming to live permanently in a foreign country from one's country of origin.

Ventilation

The process of supplying fresh air and removing stale air from a space to improve air quality.