- December 5, 2019: Published.
Our Network Mapping Process, as it pertains to mappable non-wholly owned subsidiaries, is based on the notion of control, which is a requirement in the reporting of consolidated financial statements within the accepted accounting standards. As a general rule, this is seen as an investment of greater than 50% of the voting equity of another entity.
We interpret the inclusion of subsidiary income within the accepted consolidated financial statements as sufficient to infer a controlling interest by a parent company, and it implies that the company with the majority ownership interest retains significant influence over the way in which the subsidiary manages its operations. It also indicates that the controlling parent would exercise its voting power to prevent the subsidiary from entering transactions that the parent’s management views as being contrary to its own best interest or contrary to the best interest of the controlled group.
Accepted accounting standards by region:
Learn more about these standards:
- Financial Supervisory Commission (FSC)
- Generally Accepted Accounting Principles (GAAP)
- Hong Kong Financial Reporting Standards (HKFRS)
- Indian Accounting Standard (Ind AS) 110
- International Accounting Standards Board (IASB)
- International Financial Reporting Standards (IFRS)
- Japanese Generally Accepted Accounting Principles (JGAAP)
- Journal of Management Information Systems (JMIS)
- Singapore Financial Reporting Standards (SFRS)
- Singapore Financial Reporting Standard for Small Entities (SFRS SE)
- Thai Accounting Standards (TAS)