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A company acquires a subsidiary and will prepare consolidated financial statements for exteral reporting purposes. For internal reporting purposes, the company has decided to apply the initial value method. Why might the company have made this decision?

a. It is a relatively easy mothod to apply.

b. Operating reults appearing on the parent's finacial records reflect consolidated totals.

c. The FASB now requires the use of this particular method for internal reporting purposes.

d. Consolidation is not required when the parent uses the initial value method.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9435246

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