Basics of proportionate consolidation concept

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Under the proportionate consolidation concept, which of the following statements is true?

a) The accounting emphasis in preparing consolidated financial statements is placed on the business combination being formed.

b) Holding control of a subsidiary provides the parent with an indivisible interest in that company.

c) The objective of consolidated financial statements is to serve as a report to the stockholders of the parent company.

d) The proportional consolidation concept is a hybrid of the proportionate consolidation concept and the parent company concept.

Reference no: EM13152224

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