When the investor has control over the investee, the reporting model to be used is the
A) cost model.
B) consolidation model.
C) market value model.
D) equity method.

Question

Quizplus · Accepted Answer

When the investor has control over the investee, the consolidation model should be used. This means the investor should consolidate the financial information of the investee into their own financial statements as if they are one entity.

When the Investor Has Control Over the Investee, the Reporting