Under ARB 51, "controlling financial interest" is:
A)criterion for consolidation purposes.
B)defined as 50% ownership of another entity's voting shares.
C)the ability to make decisions about another entity's activities indirectly.
D)the right to contribute to the expected residual returns of another entity as they occur.

Question

Quizplus · Accepted Answer

ARB 51 establishes the criterion for consolidation based on having a controlling financial interest, which typically involves the power to direct the activities of another entity.

Under ARB 51, "Controlling Financial Interest" Is