There Are a Number of Possible Approaches to Reporting Consolidated

question 10

Multiple Choice

There are a number of possible approaches to reporting consolidated financial statements after one company acquires control over another. Which of the following methods reports the consolidated amounts by adding together the carrying values of the assets and liabilities of the parent and the subsidiary?

• A)Pooling-of-interests method
• B)Acquisition method
• C)Purchase method
• D)New entity method