Controlling Interest Investments:
Controlling interest investments are the equity securities, where the investor (parent) company holds more than 50% of the voting stock of the investee (subsidiary) company. These investments are reported in the consolidated financial statements of the parent company by consolidating the financial statements of the parent company with the subsidiary companies.
Parent company:
The Company that controls other company or companies is referred to as parent company.
Subsidiary company:
The Company that is controlled by the parent company is referred to as subsidiary company.
To comment: On which of the following option is true.
Want to see the full answer?
Check out a sample textbook solutionChapter 10 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters, Student Value Edition (6th Edition)
- What is the stockholder's equity at the end of the year on general Accounting question?arrow_forwardI don't need ai answer accounting questionsarrow_forwardLaws can be classified into several categories: criminal law versus civil law, substantive law versus procedural law, public versus private law, and law versus equity. Discuss one of these categories and the distinctions between the two types of laws.arrow_forward