The FASB requires the economic unit concept of consolidated financial statements with respect to the elimination of intercompany profits in inventories resulting from a partially owned subsidiary's sales of merchandise to the parent company.

Question

Quizplus · Accepted Answer

The FASB requires the parent company concept, not the economic unit concept, for eliminating intercompany profits in inventories, focusing on the parent's share of the subsidiary.

The FASB Requires The Economic Unit Concept of Consolidated Financial