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Under US GAAP for NYSE listed holding, consolidation guidlines for foreign subsidiaries?


For a NYSE listed holding company, if it has an equity interest in a foreign subsidiary, at what % shareholding can the holding company consolidated revenue and profit from the subsidiary.
If the shareholding is a majority or controlling interest can all subsidiary revenue/profit be consolidated.
If less than a majority is consolidation pro-rata to equity holding ?
Any assistance would be uesful.

538 day(s) ago

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mikebadj 		The general rule is consolidation when ownership is greater than 50%. However, the technical rule is when you exert significant influence over the subsidiary. For example, you could own 40%; but hold all the seats on the board of directors and be required to consolidate.

If you are the majority or hold a contolling interest you would consolidate all of the revenue and profit; however, an expense would be recognized for the minority interest.

No proportionate consolidation is allowed under US GAAP. International Accounting Standards (IAS) allow for proportional consolidation.

Posted 538 days ago

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