In purchase accounting, a parent-subsidiary relationship is always created.

Name: In purchase accounting, a parent-subsidiary relationship is always created.
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Purchase accounting is used in mergers and acquisitions to consolidate the financials of the acquiring and acquired companies, but it does not always result in a parent-subsidiary relationship. This relationship is determined by the level of control or influence exercised post-acquisition, not solely by the use of purchase accounting.

In Purchase Accounting, a Parent-Subsidiary Relationship Is Always Created