When a subsidiary is acquired sometime after the subsidiary day of the fiscal year, which of the following statements is true?

When consolidating a subsidiary that was acquired on a date other than the first day of the fiscal year,  which of the following statements is correct in the presentation of consolidated financial statements?

A. Preacquisition earnings are excluded from the parent's consolidated statements.

B. Preacquisition earnings are shown as an addition to consolidated revenues and expenses

C. Preacquisition earnings are shown as a deduction from the beginning

D. Preacquisition earnings are shown as a deduction from consolidated revenues and expenses.

Explain your answer in the space provided below for full credit.

Answer rating: 100% (QA)

When consolidating a Subsidiay that was acquired on ... View the full answer