Consolidated financial statements o The purpose of consolidated financial statements is to present fairly, primarily for the benefit of the owners and creditors of the parent company, the results of operations and the financial position of a parent and all its subsidiaries as if the consolidated group were a single entity
Consolidated financial statements The purpose of consolidated financial statements is to present fairly, primarily for the benefit of the owners and creditors of the parent company, the results of operations and the financial position of a parent and all its subsidiaries as if the consolidated group were a single entity
Consolidated financial statements All majority-owned subsidiaries-all companies in which a parent has a controlling financial interest through direct or indirect ownership of a majorit voting interest--shall be consolidated except: if control is likely to be temporary o or if it does not rest with the majority owner(as, for instance, if the subsidiary is in legal reorganization or in bankruptcy or operates under foreign exchange restrictions, controls or other governmentally imposed uncertainties)
All majority-owned subsidiaries—all companies in which a parent has a controlling financial interest through direct or indirect ownership of a majority voting interest—shall be consolidated except: if control is likely to be temporary or if it does not rest with the majority owner (as, for instance, if the subsidiary is in legal reorganization or in bankruptcy or operates under foreign exchange restrictions, controls, or other governmentally imposed uncertainties). Consolidated financial statements
Exemption(豁免) from preparing consolidated financial statements ● An intermediate parent(中间母公司) ● Investment company/ entity(投资 司或投资性主体)
Exemption（豁免） from preparing consolidated financial statements An intermediate parent（中间母公司） Investment company / entity（投资公 司或投资性主体）
Intermediate parent o a parent is not required to (but may) Parent present consolidated financial statements 80% if and only if all of the following four conditions are met Subsidiary A o Consent of non-controlling shareholders; Securities are not traded in a public market; 70% Not filing its financial statements for listing securities: Subsidiary B Parents consolidated financial statements publicly available
Intermediate parent Parent Subsidiary A Subsidiary B 70% 80% A parent is not required to (but may) present consolidated financial statements if and only if all of the following four conditions are met: Consent of non-controlling shareholders; Securities are not traded in a public market; Not filing its financial statements for listing securities; Parent’s consolidated financial statements publicly available
Investment company's characteristics (FASB,2013) o a. The company obtains funds from investor(s)and provides the investor(s) with investment management services o b. The company commits to its investor(s) nat its business purpose and only substantive activities are investing the funds for returns solely from capital appreciation, investment income, or both
Investment company’s characteristics (FASB, 2013) a. The company obtains funds from investor(s) and provides the investor(s) with investment management services b. The company commits to its investor(s) that its business purpose and only substantive activities are investing the funds for returns solely from capital appreciation, investment income, or both