Consolidated Financial statements: subsidiary revenue
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On December 31 consolidated financial statements are being prepared for Canoe Company, and its new subsidiary acquired 6 months ago on July 1 of the current year. In your opinion, should Canoe adjust its consolidated balances for the pre-aquisition subsidiary revenues and expenses? Why or why not?
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The expert examined consolidated financial statements subsidiary revenues and expenses.
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The pre-acquisition profits (revenues less expenses) of the subsidiary company must not form part of the profits in the consolidated Financial Statements. These revenues and expenses belong to the previous owners of the company and ...
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