The entity theory approach to consolidated statements states the income of the noncontrolling interests is a distribution of the total income of the consolidated entity.

Question

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The entity theory approach to consolidated financial statements views the income of the noncontrolling interests as a distribution of the total income of the consolidated entity, reflecting the idea that all shareholders, regardless of their level of control, have an equity interest in the consolidated entity.

The Entity Theory Approach to Consolidated Statements States the Income