When parent-company-only statements are presented in the notes to the consolidated statements, the net income and retained earnings amounts in such statements agree with the corresponding amounts in the consolidated statements only if the equity method is used.

Question

Quizplus · Accepted Answer

The equity method aligns the parent company's net income and retained earnings with the consolidated financial statements by recognizing the parent's share of the subsidiary's profits and losses.

When Parent-Company-Only Statements Are Presented in the Notes to the Consolidated