Yes calling the SEC and FASB did not help at all since no one was there to pick up numerous times. The question I'm asking is how it would be recorded on the parent company's balance sheet, not whether it will matter or not because in the overall scheme, yes it will be consolidated and it will balance out, but try to think of them as not being consolidated. I'm examining the subsidiary as a separate entity for now and think that it won't be consolidated. Yes, I am an intern, and I was asked by someone working at the firm to help him interpret the financial regulations of GAAP and Staff Accounting Bulletins that relate to a specific transaction. To be more specific, it is a joint venture found by 2 companies with the parent company owning 60% of the stocks as the primary shareholder and the other company with 40% of the stocks that both pay the operating expenses of the joint venture subsidiary. However, I simplified it by just mentioning what was needed to be found since we figured out the other ones easily. The regulations that relate to this aren't crystal clear and are very open to interpretation. I was just hoping there would be an experienced CPA in here that had experience in reporting these types of transactions that could give insight into specifically how it would be recorded in the parent company's balance sheet. Nothing more, nothing less.
