Problem

Computation of Total Asset Values A reader of Gigantic Company’s consolidated fin...

Computation of Total Asset Values

A reader of Gigantic Company’s consolidated financial statements received from another source copies of the financial statements of the individual companies included in the consolidation. The person is confused by the fact that the total assets in the consolidated balance sheet differ rather substantially from the sum of the asset totals reported by the individual companies.

Required

Will this relationship always be true? What factors may cause this difference to occur?

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