Proportionate consolidation combines the financial statement of an investor and a joint operation enterprise based on the investors proportionate share of the joint operations.

Question

Quizplus · Accepted Answer

Proportionate consolidation is a method of accounting for joint ventures in which the investor's share of assets, liabilities, revenues, and expenses are combined with the joint venture's financial statement items in proportion to the investor's ownership percentage.

Proportionate Consolidation Combines the Financial Statement of an Investor and a Joint