Which of following statements is not correct in relation to the consolidation process?Group of answer choicesTo avoid double counting of the group's equity, the equity of the subsidiary at the acquisition date needs to be eliminated from the records of the subsidiary.Subsequent to the acquisition date, any intragroup transactions within the group needs to be adjusted and eliminated.The fair value adjustments of assets that were not previously recorded by the subsidiary are recognised in the business combination valuation entries.Consolidated financial statements should offset the carrying amount of the parent's investment in the subsidiary.

Which of the following statements is incorrect?Group of answer choicesA bargain purchase gain arises when the purchase consideration is greater than the FVINA acquired.When a subsidiary has existing goodwill in their books at the date of acquisition, the amount of FVINA will decrease in the acquisition analysis.The Investment in subsidiary account is always eliminated on consolidation and this account will always be equal to zero for the group.If a company acquires shares in a subsidiary cum div, consolidation adjusting entries are required to eliminate dividend payable and dividend receivable up until the dividend is paid by the subsidiary.

Before undertaking the consolidation process, it may be necessary to make the following adjustments in relation to the individual statements if the parent and the subsidiary do not use the same accounting policies for like transactions in similar circumstances: Group of answer choicesthe parent will prepare its own financial statements using the same accounting policies as the subsidiary.all of the options are incorrect.the subsidiary will prepare its own financial statements using accounting policies that are negotiated with the parent.the subsidiary will prepare its own financial statements using the same accounting policies as the parent.

Which of the following statements is incorrect?Group of answer choicesWhere consolidated financial statements are prepared over a number of years, consolidation entries need to be made every time a consolidation worksheet is prepared.Consolidation adjusting entries affect the ledger accounts of the parent and subsidiaries.A consolidation worksheet is used to help the process of adding together the financial statements of the parent and its subsidiaries.There are no consolidated ledger accounts.

Which of the following statements is correct?Group of answer choicesAASB 3 Business Combinations requires that any revaluations of a subsidiary’s assets at acquisition date must be done in the consolidation worksheet.The revaluation of non-current assets in the subsidiary’s records means that the subsidiary has adopted the cost model of accounting for those assets.Revaluations of assets such as goodwill and inventory are not permitted in the accounting records of the subsidiary.Inventory can be revalued to an amount greater than its cost in the records of the subsidiary.

Which item is eliminated when preparing a consolidation worksheet? a. Retained earnings b. Intragroup dividends c. Goodwill d. Equipment acquisitions