Which of the Following Statements Regarding the Consolidation Process Is

Multiple Choice

Which of the following statements regarding the consolidation process is FALSE?

A) Where the parent entity and the subsidiary have different ends of reporting periods, adjustments must be made to the subsidiary's statements before the preparation of the consolidated financial statements.
B) Because IFRS 3 Business Combinations requires that, under the acquisition method, the identifiable assets and liabilities of the acquirer are to be reported at fair value, fair value adjustments are prepared as part of the consolidation process.
C) Where the parent entity holds shares in the subsidiary, pre-acquisition adjustments are not part of the consolidation process.
D) The consolidation process requires the addition of the financial statements of the parent and its subsidiaries.