Which of the following statements about post-acquisition earnings is(are)incorrect?
A) They form part of earnings of the economic entity.
B) They are the earnings produced subsequent to the acquisition date by members of the group.
C) They are eliminated against the parent's earnings, in a similar fashion to pre-acquisition earnings.
D) They form part of earnings of the economic entity and they are eliminated against the parent's earnings, in a similar fashion to pre-acquisition earnings.
E) None of the given answers; they are all correct.

Question

Quizplus · Accepted Answer

Post-acquisition earnings are not eliminated against the parent's earnings; they are included in the consolidated financial statements as they represent the earnings generated after the acquisition date by the group.

Which of the Following Statements About Post-Acquisition Earnings Is(are)incorrect