Research the FASB and related positions after 2007. Two new FASB statements (141R and 160) were issued in 2007 and are now incorporated in ASC 805 and 810. You are aware that these two new statements require consolidated financial statements.
Consolidated financial statements are financial statements of an entity with multiple divisions or subsidiaries. Companies can often use the word consolidated loosely in financial statement reporting to refer to the aggregated reporting of their entire business collectively.
The purpose of consolidated statements is to present, primarily for the benefit of the shareholders and creditors of the parent company, the results of operations and the financial position of a parent company and its subsidiaries essentially as if the group were a single company with one or more branches or divisions. There is a presumption that consolidated statements are more meaningful than separate statements and that they are usually necessary for a fair presentation when one of the companies in the group directly or indirectly has a controlling financial interest in the other companies.
As Per Master Glossary of FASB Consolidated financial statements means-
The financial statements of a consolidated group of entities that include a parent and all its subsidiaries presented as those of a single economic entity.
Research the FASB and related positions after 2007. Two new FASB statements (141R and 160) were...
ACCOUNTING THEORY RESEARCH CASE The FASB ASC paragraph 810-10-45-16 states: “The noncontrolling interest shall be reported in the consolidated statement of financial position within equity, separately from the parent’s equity. That amount shall be clearly identified and labeled, for example, as noncontrolling interest in subsidiaries.” However, prior to issuing this current reporting requirement, the FASB considered several alternative display formats for the noncontrolling interest. Access the precodification standard, SFAS 160, “Noncontrolling Interest in Consolidated Financial Statements,” at www.fasb.org to answer...