Greene is considering diversifying by purchasing an insurance company and a lumber company. The CFO would like to know how the accounts of these two substantially different subsidiaries would be reported in the consolidated financial statements. Research the Accounting Standards Codification to see what guidance is provided and prepare a 2-page memo to the CFO with your findings. Include in your memo at least two examples of situations in which it may be inappropriate to combine similar-appearing accounts of two subsidiaries.
Note: In order to write the memorandum, I will need to rely on the accounting standards that allow me to report consolidated financial statements even though companies market different products or services and include in my research two examples of situations in which it would be appropriate to combine similar accounts of subsidiaries. If anyone could help with this topic I would appreciate it.