Knowledge quiz

It's time to put what you've learned to the test, get 3 right to pass this unit.

Which of the following statements are correct?

There are three correct answers.

Using the Rule-based Purchase Method, the objective is to eliminate the investment.

Using the Rule-based Purchase Method, Group reporting amortizes goodwill.

Using the Rule-based Purchase Method, Group reporting uses the reclassification method to eliminate subsidiary equity values.

Which of the following statements are correct?

There are two correct answers.

The objective of intercompany eliminations is to eliminate any transactions between the consolidation units so that there are only transactions with third parties left after the consolidating entries.

For Intercompany Eliminations, group reporting uses the eliminations business rule.

Group reporting uses reclassification methods for intercompany eliminations.

With the equity pick-up, you can re-evaluate the investee’s company investment to reflect the change in equity.

Choose the correct answer.

True

False

ICMR is a single tool in the reconciliation process that can be used both for local financial close of companies AND group financial close of a corporate group based on organizational dimensions such as consolidation unit, profit center, and segment.

Choose the correct answer.

True

False