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Theory of Consolidation
Theory of Consolidation
Chapter-2
1. What is the basic idea underlying the preparation of consolidated
financial statements?
2. What is meant by parent company? When is a company
considered to be a parent company?
3. What major criteria must be met before a company is
consolidated?
4. What is meant by indirect control give an illustration?
Chapter-4
1. What portion of the book value of the net assets held by a
subsidiary at acquisition is included in the consolidated balance
sheet.
2. What portion of the fair value of subsidiaries net assets normally
is included in the consolidated balance sheet following a business
combination?