'If There Are No Intra-Group Transactions and No Goodwill or Discount

question 8

Multiple Choice

'If there are no intra-group transactions and no goodwill or discount on acquisition, the consolidated financial statements are an aggregate of those financial statements of the companies in a group.' This statement is:

• A)true, because only intra-group transactions need to be considered in the preparation of group financial statements
• B)false, because assets and equity of the group would be overstated
• C)true, because only intra-group transactions and adjustments for differences on acquisition need to be considered in the preparation of group financial statements
• D)false, because assets and equity would be understated

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