If the parent company owns 90% of the subsidiary company's outstanding shares, the company should generally account for the subsidiary's income under the

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The consolidation method should be used to account for the subsidiary's income when the parent company owns 90% of the subsidiary's outstanding shares. The consolidation method involves combining the financial statements of the parent and subsidiary as if they were one entity, in order to show the financial results and position of the parent and its subsidiaries as a single economic entity. This method allows for the recognition of the subsidiary's assets, liabilities, revenues, and expenses in the consolidated financial statements of the parent.

If the Parent Company Owns 90% of the Subsidiary Company's