Question

What is the purpose of showing an allocation of the net income between the parent and the subsidiary companies on the consolidated statement of comprehensive income?

Accepted Answer

A) To report the net income of the subsidiary company to its shareholders. 
B) To report the net income of the parent and subsidiary companies to their respective shareholders. 
C) To report the net income of the parent and subsidiary companies to the tax department. 
D) To report the net income of the parent company to its shareholders.

Exam 5: Consolidation: Non-Controlling Interest

What is the purpose of showing an allocation of the net income between the parent and the subsidiary companies on the consolidated statement of comprehensive income?