The adjustments included in the consolidation worksheet are:
I. pre-acquisition entries
II. business combination valuation entries
III. elimination of the effects of intragroup transactions

A) I, II and III
B) I and II only
C) I only
D) II only

Learning Objectives

• Acquire knowledge of and apply the idea of unrealized profits and deficits in intragroup transactions, along with understanding the requirement for their removal in consolidated financial statements.
• Learn the steps for determining and incorporating appropriate consolidation adjustment entries for sales revenue, costs of sales, and inventory.
• Acknowledge the repercussions of moving assets among entities within the same group, particularly plant and equipment, on unified financial statements.