Please see the attached assignment details... This will be due by end of day today.
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
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
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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