The first step in the consolidation process, regardless of which year is being reported, is to undertake the __________.
A)acquisition analysis.
B)goodwill calculation.
C)eliminations.
D)pre-acquisition adjustments.

Question

Quizplus · Accepted Answer

The first step in the consolidation process is to undertake the acquisition analysis. This involves identifying the assets acquired, liabilities assumed, and any non-controlling interest in the acquiree, as well as determining the acquisition-date fair values for each. This step is crucial for determining the amount of goodwill or gain from a bargain purchase.

The First Step in the Consolidation Process, Regardless of Which