In Consolidated Financial Statements of a Parent and Subsidiaries, an Income

Multiple Choice

In consolidated financial statements of a parent and subsidiaries, an income tax adjustment is necessary:

A) For advising Canada Revenues Agency only.
B) Whenever unrealized profit causes a difference between the carrying amount of an asset and the carrying amount shown in the consolidated financial statements.
C) Where unrealized profit causes a difference between the carrying amount of an asset or a liability in the records of the legal entity only.
D) All of the above.