When ownership of another company is at least 20% and up to and including 50%,consolidation is required.

Name: When ownership of another company is at least 20% and up to and including 50%,consolidation is required.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Consolidation is only required when the ownership of another company exceeds 50%. When the ownership is between 20% and 50%, the investor company can choose to use either the equity method of accounting or the cost method of accounting.

When Ownership of Another Company Is at Least 20% and Up