Par-Mac Corporation is a joint venture equ

问题单项选择题

Par-Mac Corporation is a joint venture equally controlled by Parker Company and Macintosh Company. Which method should Macintosh use to account for its ownership interest in Par-Mac according to U. S. Generally Accepted Accounting Principles ( U. S. GAAP), and which method recommended for Parker under International Financial Reporting Standards (IFRS) U.S. GAAP IFRS（）①A. Equity methodProportionate consolidation method ②B. Equity methodConsolidation method ③C. Consolidation method Proportionate consolidation method

A. ①

B. ②

C. ③

答案

参考答案：A

解析：

When a finn that reports under U.S. GAAP has joint control over another entity, the equity method of accounting is required. Under IFRS, the proportionate consolidation method is the recommended method; however, the equity method is also permitted.