Why this is mistaken
Control can require full consolidation even when the parent owns less than all shares. Preserve NCI within consolidated equity and separately attribute net income and comprehensive income. The correction starts with the acquisition-date amount and rolls it forward for outside owners' shares of income, OCI, dividends, and supported ownership changes. Classification and measurement questions with redemption or preferred features require further analysis.
Where to watch
When this mistake may appear
- Consolidation means the parent owns 100 percent of subsidiary equity.
Check your work
Your work may contain this mistake if:
- Removes all subsidiary equity without presenting or rolling forward the outside owners' claim.