Bring out the difference between two methods of Accounting for Amalgamation.
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- Discuss how intercompany transfers should be treated for consolidation purposes, in both the statement of financial position and the statement of comprehensive incomeWhat is 'fair value',and why is it relevant to consolidation accounting?Demonstrate the consolidation procedures to eliminate intra-entity sales and purchases balances.
- Why do we need to pass the consolidation elimination entry everytime we prepare a consolidated financial statement?Discuss how intercompany transactions and debts should be treated for consolidation purposes, in both the statement of financial position and the statement of comprehensive income.What is the difference between a merger and a consolidation?
- Describe how, despite the fact they include different accounts, conceptually, the [C] entry under the equity method of pre-consolidation bookkeeping is the same as the [C] entry under the cost method of pre-consolidation bookkeeping.What are some of the implications of allowing the group to have two options in accounting for goodwill on consolidationWhy do we need to pass the consolidation elimination entry every time we prepare a consolidated financial statement