If a company acquires another company,but the reporting entity remains the same,the acquired company's performance wouldbe included in the parent's financial results.A) As if the acquisition took place at thebeginning of the reporting period.B) Beginning on the date of the acquisitionwith additional detail in the footnotes.C) As if the acquisition took place at thebeginning of the earliest comparable periodpresented on then financial statements.

Answered: ing entity remains the company's…

Business

Accounting

ing entity remains the company's performar the parent's financia

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

If a company acquires another company,
but the reporting entity remains the same,
the acquired company's performance would
be included in the parent's financial results.
A) As if the acquisition took place at the
beginning of the reporting period.
B) Beginning on the date of the acquisition
with additional detail in the footnotes.
C) As if the acquisition took place at the
beginning of the earliest comparable period
presented on then financial statements.

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