The current method of accounting for a stock acquisition is

The current method of accounting for a stock acquisition is more aligned with the Parent Company Concept versus the Economic Unit Concept.

Solution

Solution: False

Explanation: Under the parent company concept, consolidated net income will be same as the consolidated net income under the economic unit concept. However consolidated net income includes total realized combined income of the parent company as well as its subsidiaries. Noncontrolling interest (earlier known as minority interest) need to be presented as a component of of equity in the consolidated financial statement