Again, consider the facts presented in PR 8-1 above. Is it acceptable for Pop to continue to account for its investment in Son for the current year, using the equity method of accounting and delaying consolidation until the following year?

Data From PR 8-1:

Pop Corporation has owned a 30 percent interest in Son Corporation for ten years, and has properly recorded this investment using the equity method of accounting. On July 1 of the current year Pop purchased an additional 40 percent interest in Son.