It is important to distinguish between pre-acquisition and post-acquisition equity of a subsidiary to allow:

A) post-acquisition equity to be eliminated on consolidation.
B) goodwill or gain on bargain purchase to be calculated.
C) avoidance of double counting of pre-acquisition equity.
D) none of the above.

Pre-acquisition Equity

The equity interest that an acquirer holds in an acquiree before the business combination, accounted for in the acquisition process.

Post-acquisition Equity

The portion of an acquired company's equity that accrues or changes after the date of acquisition by the parent company.

Consolidation

The process of combining the financial statements of separate companies into the consolidated financial statements of a single entity, typically a parent company and its subsidiaries.