Which investment(s) require consolidation of the investee's assets and liabilities on the investor's balance sheet?

Question

Quizplus · Accepted Answer

Investments where the investor has control over the investee's operations typically require consolidation of the investee's assets and liabilities on the investor's balance sheet. This is because control implies the ability to direct the financial and operating policies of the investee, which is often evidenced by ownership of more than 50% of the voting rights.

Which Investment(s) Require Consolidation of the Investee's Assets and Liabilities