Sun Co. is a wholly owned subsidiary of Star Co. Both companies have separate general ledgers, and prepare separate financial statements. Sun requires stand-alone financial statements. Which of the following statements is correct?
A: Consolidated financial statements should be prepared for both Star and Sun.
B: Consolidated financial statements should only be prepared by Star and not by Sun.
C: After consolidation, the accounts of both Star and Sun should be changed to reflect the consolidated totals for futrue ease in reporting.
D: After consolidation, the accounts of both Star and Sun should be combined together into one general-ledger accounting system for future ease in reporting.