_____Under the FASB's consolidation rules, an entity that is controlled by financial arrangements (rather than by a majority voting interest)
A) Must be consolidated.
B) Must be consolidated if the parent is publicly owned.
C) Must be consolidated if the parent has significant influence.
D) Must be consolidated only if the subsidiary is partially owned.

Question

Quizplus · Accepted Answer

Under the FASB's consolidation rules, an entity that is controlled through financial arrangements, rather than by a majority voting interest, must be consolidated. This is based on the principle that control, rather than the form of ownership, dictates the need for consolidation.

_____Under the FASB's Consolidation Rules, an Entity That Is Controlled