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Q4-4ISTQ

Expert-verified
Intermediate Accounting (Kieso)
Found in: Page 198

Short Answer

The non-controlling interest section of the income statement is:

(a) required under GAAP but not under IFRS.

(b) required under IFRS but not under GAAP.

(c) required under IFRS and GAAP.

(d) not reported under GAAP or IFRS.

Option c is the correct answer.

See the step by step solution

Step by Step Solution

Meaning of Parent Company

The term parent company is used to denote an entity that holds controlling interests in other companies or companies, and controlling companies are known as subsidiaries.

The explanation for the correct answer

The non-controlling interest section is reported under both types of income statements, whether it is prepared under GAAP or IFRS. Both require the reporting of the same for a better understanding of the users and stakeholders for effective and efficient decision-making.

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