When a parent company owns a majority of the common shares of a subsidiary company but not 100% of them, the parent company will consolidate all of the subsidiary's revenues and expenses into its financial statements.

Question

Quizplus · Accepted Answer

When a parent company owns more than 50% of a subsidiary's common shares, it has control over the subsidiary, and thus, it consolidates the subsidiary's financial statements with its own, including all revenues and expenses, regardless of the percentage owned beyond the majority stake.

When a Parent Company Owns a Majority of the Common