Rules consolidating subsidiaries

Rather, the earnings or losses of such entities should be reflected in the registrant's financial statements on the equity method of accounting.

Note that you are averaging balances once you consolidate detail from your subsidiaries sets of books.

If you hold a minority interest in the subsidiary of a parent company, the consolidated financial statement won’t give you the information you need to make decisions about your holdings.

A subsidiary with minority shareholders must report its financial results separately from its parent company’s in addition to having its report included in the consolidated financial statements.

to use for the consolidation:• If you are consolidating balances, enter the parent set of book’s functional currency.

Optionally, enter STAT to consolidatestatistical balances.• If you are consolidating transactions, enter the parent set of book’s functional currency.