In January 2003, the FASB Released Interpretation 46, "Consolidation of Variable

question 31

Multiple Choice

In January 2003, the FASB released Interpretation 46, "Consolidation of Variable Interest Entities," which:

• A)re-emphasized the need for 50% stock ownership to exert effective control.
• B)expanded U.S.GAAP to consider effective control rather than legal control for consolidated financial statements.
• C)took a "form-over-substance" approach to define control in determining requirements for consolidated financial statements.
• D)defined effective control as ownership of 30% or more of another entity's voting shares.

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Definitions:

Average Weight

The mean body weight of an individual or population, typically used as a standard measure for comparison or health assessment.

Americans

People originating from or living in the United States of America.

Essential Fat

Fats required for normal physiological functions that the body cannot synthesize on its own and must be obtained through diet.

Females

Refers to the sex of an organism, or part of an organism, that produces non-motile ova (egg cells) and can bear offspring.