When the consolidation adjustments are made where are the adjustments recorded?

Unit 3 Discussion Part 1 Advance Accounting

Topic #1: Reciprocity?

When dealing with a continued consolidation, there are several issues to consider. The first issue is dealing with the concept of reciprocity. Please consider the following questions:

  • Does the same team of accountants create the traditional financial statements that do the consolidation?
  • When the consolidation adjustments are made where are the adjustments recorded?
  • Who keeps track of these adjustments?

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