Using Technology to Teach Advanced Accounting: The Case of Minority Interest in Consolidated Financial Statements‪.‬

INTRODUCTION The preparation of consolidated financial statements is required for companies that own controlling interest over subsidiaries. The acquisition of other companies is seen as a means of leveraging an advantage over a company's competition through synergies achieved by two companies, increased economies of scale, vertical integration in a firm's value chain, or even diversification of risk (Hoyle, Schaefer, & Doupnik, 2009). Regardless of the reason, however, Statement of Financial Accounting Standards (SFAS) 141 revised in December 2007 (now known as SFAS 141R) requires that consolidated financial statements need be issued by the parent company if it has acquired a majority interest in its subsidiaries.