What is the need for elimination in the consolidation process? What accounts must be eliminated and why? Discuss the ramifications of not eliminating journal entries.© BrainMass Inc. brainmass.com June 4, 2020, 1:24 am ad1c9bdddf
Consolidated statements bring together the operating results and financial position of two or more separate legal entities into a single set of statements for the economic entity as a whole. To accomplish this, the consolidation process includes procedures that eliminate all effects of inter-corporate ownership.
Elimination entries are done with a purpose that all separate companies ...
This solution explains the need for elimination in the consolidation process, outlines what accounts must be eliminated, why they must be eliminated, and discusses the ramifications of not eliminating journal entries.