Costco Wholesale Corporation owns and operates membership warehouses in the United States, Canada, United Kingdom, Mexico, Japan, Australia, and Spain. Costco also engages in retail operations through majority owned subsidiaries in Korea and Taiwan. The outside equity interests (not owned by Costco) in the Korean and Taiwanese subsidiaries are presented collectively as noncontrolling interests in Costco’s consolidated financial statements.

    Access Costco’s 2015 10-K annual report and answer the following:

  1. How does Costco present the noncontrolling interest in the following financial statements?

∙ Consolidated Balance Sheet
∙ Consolidated Income Statement
∙ Consolidated Statement of Other Comprehensive Income
∙ Consolidated Statement of Cash Flows

  2. Explain how Costco’s presentations of the noncontrolling interest reflect the acquisition method for consolidated financial reporting as a single economic entity.