The main purpose of the pre-acquisition entry is to ensure no double counting of group net assets and equity.

Name: The main purpose of the pre-acquisition entry is to ensure no double counting of group net assets and equity.
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Question

Quizplus · Accepted Answer

The pre-acquisition entry eliminates any intercompany transactions and balances between the parent and subsidiary companies to avoid double counting of assets and equity in the consolidated financial statements.

The Main Purpose of the Pre-Acquisition Entry Is to Ensure