What is the effect of proportional ownership in a subsidiary where the parent owns less than 100% of the shares but above 50%?

Question

Answer

The parent consolidates 100% of the subsidiary’s
assets and liabilities, but Non-Controlling Interest (NCI) is recorded for the
remaining ownership

Answer

The parent consolidates only the assets and not the liabilities

Answer

The parent consolidates only its percentage
ownership of the subsidiary’s assets and liabilities

Answer

The parent excludes the subsidiary from consolidation

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