Posted by: Pdfprep
Post Date: March 3, 2021
Organization X owns a 38 percent equity stake in Organization Y.
Which of the following statements is true regarding the financial treatment for this relationship?
A . Y should be listed as an investment asset on X’s balance sheet
B . X must consolidate the financial statements for both organizations
C . Y should be reported as a footnote to X’s financial statements
D . Y should not be reported by X as X does not have a controlling interest
Answer: A
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