Asked by Ashlee Tennell on Jun 14, 2024
Verified
All consolidation adjusting entries must be repeated in subsequent accounting periods.
Consolidation Adjusting Entries
Adjustments made in accounting records to remove the effects of intercompany transactions during the consolidation process for a group’s financial reporting.
Accounting Periods
Defined time frames in which financial transactions are recorded and financial statements are prepared.
- Appreciate the significance of excluding double entries in the consolidation of financial statements between parent and subsidiary corporations.
Verified Answer
MZ
Micah ZandersJun 19, 2024
Final Answer :
False
Explanation :
Consolidation adjusting entries are specific to the period in which they are made and are not automatically repeated in subsequent periods. Each period may require different adjustments based on the intercompany transactions and changes in the financial relationships between the parent and subsidiary.
Learning Objectives
- Appreciate the significance of excluding double entries in the consolidation of financial statements between parent and subsidiary corporations.