Which of the following is the method used when one company owns more than 50% of the shares of another company?

Question

Quizplus · Accepted Answer

When one company owns more than 50% of the shares of another company, it has significant influence over the latter. In such a scenario, the consolidation method is used to combine the financial statements of both companies, giving a more accurate picture of the overall financial health of the group. The consolidation method is used in accordance with Generally Accepted Accounting Principles (GAAP) and is commonly used when preparing the financial statements of large multinational corporations.

Which of the Following Is the Method Used When One