How would the not-for-profit organization report each controlled profit-oriented enterprise?

Question

Quizplus · Accepted Answer

The not-for-profit organization would report each controlled profit-oriented enterprise by either consolidating it into its own financial statements or by using the equity method and disclosing additional financial information. This is in accordance with the Generally Accepted Accounting Principles (GAAP) and ensures proper accounting for the organization's interest in for-profit subsidiaries. Option A is incorrect as disclosure is required. Options B and D may not provide sufficient information on the organization's interest and financial performance in the controlled enterprise.

How Would the Not-For-Profit Organization Report Each Controlled Profit-Oriented Enterprise