When a subsidiary is not consolidated,it is accounted for as an investment on the parent's balance sheet.

Question

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When a subsidiary is not consolidated, it is accounted for as an investment on the parent's balance sheet. This means that the parent company reports the subsidiary as a separate line item on its balance sheet and recognizes the subsidiary's assets, liabilities, and equity investments at their fair values. The parent company will also recognize any dividends received from the subsidiary as income on its income statement.

When a Subsidiary Is Not Consolidated,it Is Accounted for as an Investment