1. If the parent company has an absolute controlling position in its subsidiaries (holding more than 50 shares), it can consolidate the statements and multiply the net profit of the subsidiaries by the shareholding ratio of the parent company, which will be directly included in the profits of the parent company.
2. If the parent company has actual control over its subsidiaries, it can also refer to absolute holding and consolidate the statements, as shown above.
3. If the parent company only participates in subsidiaries, it can't consolidate the statements, and it should be recorded as dividends or profit distribution of long-term investment in subsidiaries.
Related knowledge points:
The net profit of the subsidiary is equal to the investment income of the parent company, which is included in the net profit of the parent company, which is equivalent to the same profit being confirmed twice, so the internal investment income of the parent company must be offset. In the case of a non-wholly-owned subsidiary, the net profit of the subsidiary is not equal to the investment income confirmed by the parent company, and the difference is reflected in the consolidated income statement as the profit and loss of minority shareholders.