Asked by
Elizabeth Avilez
on Dec 01, 2024Verified
Which consolidation approach excludes the NCI?
A) Proportionate consolidation
B) Parent-company method
C) Parent-company extension method
D) Entity method
NCI
Non-Controlling Interest, a line item on the consolidated balance sheet that reflects the equity in a subsidiary not attributable directly or indirectly to the parent company.
Consolidation Approach
An accounting method used where a parent company combines its financial statements with those of its subsidiaries as if they comprise a single entity.
Parent-Company Method
An approach in consolidation where the financial statements of the parent company include its subsidiaries' operations by integrating their assets, liabilities, and equity as if they were wholly owned.
- Identify the consolidation approach that excludes Non-controlling Interest (NCI).
Verified Answer
CS
Learning Objectives
- Identify the consolidation approach that excludes Non-controlling Interest (NCI).