A consolidated balance sheet of a parent and its 80%-owned subsidiary reports ac

Question

A consolidated balance sheet of a parent and its 80%-owned subsidiary reports accumulated other comprehensive income equal to:

A) The parent's beginning AOCI plus the subsidiary's beginning AOCI plus/minus consolidated other comprehensive income/loss attributable to the parent for the current year.

B) The parent's beginning AOCI plus the subsidiary's beginning AOCI plus/minus total consolidated other comprehensive income/loss for the current year.

C) The parent's beginning AOCI plus/minus other comprehensive income/loss attributable to the parent for the current year.

Explanation / Answer

Answer is option (C) The parent’s beginning AOCI plus/minus other comprehensive income/loss attributable to

the parent for the current year.

Explanation;

As we know that in consolidated balance sheet, accumulated other comprehensive income will be equal to;

The parent’s beginning AOCI (Accumulated other comprehensive income)

Plus / Minus;

other comprehensive income/loss attributable to the parent for the current year.

Thus correct answer is option (C).

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.