If a child has Impacted calculation status during consolidation, what happens to the parent?

• A. The parent entity is re-consolidated.
• B. The parent is skipped.
• C. The parent is not affected.
• D. The parent is deleted.

Answer: (A)

In consolidation, a parent’s totals depend on the numbers from its children. When a child is in Impacted calculation status during consolidation, it means the child’s data has changed or needs reevaluation, so the parent must be updated to reflect those changes. The system therefore re-consolidates the parent to pull in the revised child values and recompute the parent’s consolidated total for that period. This keeps the overall financial picture accurate across the hierarchy.

Skipping would leave the parent’s numbers out of date, not affected would ignore the necessary recalculation, and deletion would remove data rather than refresh it.