Under FASB 141R,consolidation follows largely which theory approach?
A)Proprietary
B)Parent company
C)Entity
D)Variable

Question

Quizplus · Accepted Answer

FASB 141R follows the entity theory approach, which considers the subsidiary as a separate legal entity with its own equity and assets. This approach focuses on the economic substance of the relationship between the parent company and its subsidiaries, rather than just the legal form.

Under FASB 141R,consolidation Follows Largely Which Theory Approach