The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles.

Required: Determine the specific citation for accounting for the following:

1. Consolidated financial statements shall disclose the consolidation policy that is being followed. In most cases this can be made apparent by the headings or other information in the financial statements, but in other cases a note to financial statements is required.

2. In general, there shall be eliminated intercompany items and transactions between persons included in the (a) consolidated financial statements being filed and, as appropriate, (b) unrealized intercompany profits and losses on transactions between persons for which financial statements are being filed and persons the investment in which is presented in such statements by the equity method. If such eliminations are not made, a statement of the reasons and the methods of treatment shall be made.

3. The purpose of consolidated financial statements is to present the results of operations and the financial position of the parent and its subsidiaries as if the consolidated group were a single economic entity.