In consolidating a wholly owned parent-founded subsidiary, which of the following adjustments or eliminations is not required?

A) Eliminating any unrealized profits or losses
B) Eliminating intercompany payables and receivables
C) Adjusting for intercompany transactions
D) Adjusting for goodwill impairment

Goodwill Impairment

A reduction in the book value of goodwill on a company's balance sheet, indicating that the value of acquired assets has decreased.

Unrealized Profits

Profits that have been generated on paper through investments but have not actually been realized through a sale or exchange.

Intercompany Transactions

Transactions between entities within the same group that are eliminated in the process of preparing consolidated financial statements to avoid double counting.