Difference between revisions of "Account for Subsidiaries"
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A subsidiary is a company that is controlled by another company that owns 50% or more of its voting stock. The controlling company, also called the parent company, is said to have a controlling interest in the subsidiary.<ref name="rf1">http://www.investopedia.com/terms/s/subsidiary.asp</ref> This type of parent-subsidiary relationship typically comes about as the result of [[Make Acquisitions in a Down Economy|acquisitions]] or heavy investment by a large corporation in another company. The accounting methods used to recognize this relationship vary according to the degree of influence exercised by the parent company. | A subsidiary is a company that is controlled by another company that owns 50% or more of its voting stock. The controlling company, also called the parent company, is said to have a controlling interest in the subsidiary.<ref name="rf1">http://www.investopedia.com/terms/s/subsidiary.asp</ref> This type of parent-subsidiary relationship typically comes about as the result of [[Make Acquisitions in a Down Economy|acquisitions]] or heavy investment by a large corporation in another company. The accounting methods used to recognize this relationship vary according to the degree of influence exercised by the parent company. | ||
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==Steps== | ==Steps== | ||
