In a proposed Statement, "Consolidated Financial Statements: Purpose and Policy," the FASB would replace objectively determined legal form by subjectively determined economic substance as a basis for consolidated financial statements. Majority ownership of an investee's outstanding common stock would no longer be a prerequisite for consolidation.
a. Present arguments in support of the FASB's proposal.
b. Present arguments in opposition to the FASB's proposal.

Question

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The Answer of In a proposed Statement, "Consolidated Financial Statements: Purpose and Policy," the FASB would replace objectively determined legal form by subjectively determined economic substance as a basis for consolidated financial statements. Majority ownership of an investee's outstanding common stock would no longer be a prerequisite for consolidation. a. Present arguments in support of the FASB's proposal. b. Present arguments in opposition to the FASB's proposal.

In a Proposed Statement, "Consolidated Financial Statements: Purpose and Policy