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:

Concrete

Pertaining to material objects, physical construction, or specific, tangible ideas as opposed to abstract concepts.

Symbolic Interaction Theory

Theory that people make sense of the world based on their interpretation of words or symbols used by others.

Semantics

The branch of linguistics and logic concerned with meaning, including the relations between signs and what they denote.

Dissonance Theory

A psychological model proposing that inconsistency among beliefs, attitudes, or behaviors creates discomfort leading to an alteration in one of them to reduce the dissonance.