In changing from the cost method to consolidation, which of the following is not required?

Question

Quizplus · Accepted Answer

The elimination of the subsidiary's retained earnings since acquisition is not required when changing from the cost method to consolidation. Instead, the consolidation process involves combining the parent's and subsidiary's financial statements as if they were a single entity, which includes retaining the subsidiary's earnings as part of the consolidated retained earnings, rather than eliminating them.

In Changing from the Cost Method to Consolidation, Which of the Following