Question: Which statement is true? 1 . When the parent uses the equity method of accounting in its separate entity records, NCI is included in the

Which statement is true?

1 .

When the parent uses the equity method of accounting in its separate entity records, NCI is included in the investment in subsidiary account on the parent

s SFP

.

2 .

In the years after acquisition, NCI on the consolidated SFP represents the fair value of the subsidiary

s equity that belongs to shareholders other than the parent

(

the controlling interest

)

at that point in time.

3 .

NCI is only represented on the consolidated SFP

.

4 .

In the years after acquisition, NCI on the consolidated SFP represents the subsidiary

s fair value at acquisition allocated to shareholders other than the parent

(

the controlling interest

) .

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