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What Is the Purpose of Consolidation Adjustments

Question 3

Multiple Choice

What is the purpose of consolidation adjustments?


A) they are required at year end to adjust for goods or cash which are in transit between entities in the group after the consolidation date
B) they are required at year end to deal with the fact that the subsidiary is operating in a different currency to the parent.
C) they are required at year end to adjust for goods or cash which are in transit between entities in the group before the consolidation date
D) they are required at the year end to allow for the fact that the value of assets in transit has changed due to inflation

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