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[solution]: INSTRUCTIONS: Please provide 250 word ORIGINAL responses to each


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INSTRUCTIONS: Please provide 250 word ORIGINAL responses to each of the two topics. Make sure

 

work is original and cite your sources.

 

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?

 


 

Topic #2: Fair Value?

 


 

Topic 2: Under traditional accounting methodology, historical cost is the accounting

 

evaluation tool. However, when consolidations are implemented, the fair market value is

 

used. Please consider the following questions:

 


 


 

Why is it important that consolidations prescribe to fair value?

 


 


 


 

When is the adjustment made?

 


 


 


 

How often is the adjustment recalculated?

 


 


 


 

How are the adjustments kept?

 


 


 


 

Respond per your Syllabus guidelines.

 


 

 


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