Summary of Statement No. 94
Consolidation of All Majority-owned Subsidiaries--an amendment
of ARB No. 51, with related amendments of APB Opinion No. 18 and
ARB No. 43, Chapter 12 (Issued 10/87)
Summary
This Statement amends ARB No. 51, Consolidated Financial
Statements, to require consolidation of all majority-owned
subsidiaries unless control is temporary or does not rest with the
majority owner. This Statement requires consolidation of a
majority-owned subsidiary even if it has "nonhomogeneous"
operations, a large minority interest, or a foreign location.
This Statement also makes certain related amendments
to APB Opinion No. 18, The Equity Method of Accounting for
Investments in Common Stock, and to ARB No. 43, Chapter 12,
"Foreign Operations and Foreign Exchange." Among other changes,
those amendments preclude use of parent-company financial
statements prepared for issuance to stockholders as the financial
statements of the primary reporting entity.
This Statement requires that summarized information
about the assets, liabilities, and results of operations (or
separate statements) of previously unconsolidated majority-owned
subsidiaries continue to be provided after those subsidiaries are
consolidated.
This Statement is effective for financial statements
for fiscal years ending after December 15, 1988. Restatement of
comparative financial statements for earlier years is
required.
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