Final answer:
The further adjustments to the consolidated SOFP include the elimination of intercompany debt, recognition of non-controlling interest, and adjustment for fair value differences, all of which are crucial for accurately presenting the consolidated financial position. The correct option is d.
Step-by-step explanation:
The further adjustments to the consolidated Statement of Financial Position (SOFP) include:
- Elimination of intercompany debt: This involves removing from the consolidated balance sheet any loans or debts that the parent company and its subsidiaries have recorded against each other.
- Recognition of non-controlling interest: It represents the portion of equity in a subsidiary not attributable to the parent company. This must be recognized separately in the consolidated SOFP.
- Adjustment for fair value differences: Any difference between the fair value of the net assets at the acquisition date and their carrying amount must be adjusted for in the consolidated SOFP.
All of these adjustments are essential to accurately reflect the financial position of the consolidated entity as a single economic unit, rather than as separate legal entities.
Hence, Option d is correct.