Which of the Following Is True with Respect to Performing

Multiple Choice

Which of the following is true with respect to performing consolidation adjustments for intragroup borrowings and the corresponding interest?

A) It is not necessary to perform consolidation adjustments with respect to intragroup borrowings and the corresponding interest.
B) From the group's perspective, these transactions create assets and liabilities and revenues and expenses that do not exist in terms of the group's relationship with external entities
C) The adjustment to the asset and liability is only necessary in the year the intragroup loan is issued.
D) Only a tax adjustment is necessary.