Under current GAAP, only the parent company concept is allowed.

Question

Quizplus · Accepted Answer

Under current GAAP (Generally Accepted Accounting Principles), both the parent company concept and the entity concept are allowed for reporting consolidated financial statements. The parent company concept focuses on the interests of the parent company's shareholders, while the entity concept treats the consolidated group as a single economic entity, including both the parent and its subsidiaries.

Under Current GAAP, Only the Parent Company Concept Is Allowed