If the parent company owns more than 50% of the subsidiary's voting stock,and effectively has control of the subsidiary,consolidated financial statements are

Question

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When the parent company owns more than 50% of the subsidiary's voting stock and effectively has control of the subsidiary, consolidated financial statements are required under generally accepted accounting principles (GAAP). This is because the parent company has the ability to control the subsidiary's financial and operating decisions and therefore consolidating the financial statements provides a more accurate picture of the overall financial health of the parent company and its subsidiaries.

If the Parent Company Owns More Than 50% of the Subsidiary's