Consolidation at Acquisition

  1.Describe the characteristics of consolidated financial statements immediately following a business combination. Prepare consolidated financial statements immediately following a business combination, including: calculate consolidated balances on the consolidated balance sheet, understand consolidating investment eliminating entries, and understand intercompany receivable/payable eliminating entries. 2. Describe the effects that the method a parent uses to carry an investment (on its books) in a subsidiary has on the investment balance that must be eliminated in the consolidating process.