Which of the following are other issues to consider in the preparation of the consolidated financial statements?
I. when a parent acquires a subsidiary after that subsidiary has acquired its own subsidiary.
II. when the parent changes its ownership interest in a subsidiary after the consolidation group has been formed.
III. where the parent has control over two subsidiaries but only has an ownership interest in one of those subsidiaries.

Question

Quizplus · Accepted Answer

All three issues should be considered in the preparation of consolidated financial statements. 
I. When a parent acquires a subsidiary after that subsidiary has acquired its own subsidiary, the effects of the acquired subsidiary's assets and liabilities have to be incorporated into the consolidated financial statements. 
II. When the parent changes its ownership interest in a subsidiary after the consolidation group has been formed, adjustments to the consolidated financial statements have to be made to reflect the change in ownership. 
III. Where the parent has control over two subsidiaries but only has an ownership interest in one of those subsidiaries, the financial statements of both subsidiaries have to be included in the consolidation, but the non-controlled subsidiary will be accounted for in a different way.

Which of the Following Are Other Issues to Consider in the Preparation