In consolidation worksheet entry ${?}^{**}C,$ we adjust the parent's beginning of the year retained earnings to a full accrual basis. Why don't we adjust to the parent's end of the year retained earnings balance on the consolidated worksheet? Clearly, in a consolidated balance sheet, we wish to report the parent's end$-$of$-$period consolidated retained earnings at its full accrual GAAP basis. To accomplish this goal, we utilize the following separate individual components of end$-$of$-$period retained earnings available on the worksheet:

Beginning of the year balance $($after ${?}^{**}C$ adjustment if parent does not employ equity method$)+$ Net income $($parent$\text{'}$s share of consolidated net income adjusted to full accrual by combining revenues and expensesincluding excess acquisition$-$date fair value amortizations$)-$ Dividends $($parent$\text{'}$s dividends$)=$ End of the year balance

The worksheet provides for the computation of current year full accrual consolidated net income via the income statement section. Dividends are already provided in the retained earnings section of the consolidated worksheet. The only component of the ending balance of retained earnings that requires a special adjustment ${(}^{**}C)$ is the beginning balance.

Questions

How does the consolidation worksheet entry ${?}^{**}C$ differ when the parent uses the initial value method versus the partial equity method?

Why is no $*$ C adjustment needed when consolidated statements are prepared for the first fiscal year$-$end after the business combination?