Consolidated Financial Statements F09-04b

What are the exceptions to when an entity must consolidate with another entity?

1. If the investor / parent has majority ownership of an investee / subsidiary (>50% of the voting stock of the investee), but is prevented from exercising that majority ownership to control the financial and operating policies or activities of the subsidiary
2. Industry specific guidelines prevent certain entities from consolidating controlled entities. E.g registered investment companies, brokers/ dealers in securities.
3. Available interest (investment) or subsidiary