Prop Consol.

Proportionate consolidation is: A) recommended by U.S GAAP for jointly controlled entities, but may or may not be permitted under IASB GAAP. B) recommended by IASB and U.S. GAAP for jointly controlled entities. C) not permitted under IASB or U.S. GAAP, even for jointly controlled entities. D) recommended by IASB GAAP for jointly controlled entities, but may or may not be permitted under U.S. GAAP. Your answer: D was correct! Recommended by IASB GAAP for jointly controlled entities, but may or may not be permitted under U.S. GAAP Hmmmm… May or may not be permitted under U.S. GAAP? Methinks NOT permitted.

That is garbage

it’s not permited under US GAAP, but D is still the best option.

ok loooooong time ago I had posted this same question… the schweser books say that propotionate consolidation is absolutely NOT permitted by US. GAAP, but I looked it up in the CFAI text…and there is a line that says that it is still unclear whether or not US GAAP allows it…so it may or may not be permitted…but it is definitely NOT recommended… can’t remember the page number…anyone care to search through their text? I don’t have the books in front of me…