Describe the consolidated statement of financial position and statement of earnings.

- When a corporation owns more than \(50 \%\) of the outstanding common shares of another corporation, the investor (parent) is deemed to control the other corporation (subsidiary).

- In this case, the parent is required to issue consolidated financial statements in which the parent's and subsidiary's financial statements are combined.

- Noncontrolling (or minority) interest is disclosed when the parent owns more than \(50 \%\), but less than \(100 \%\) of the outstanding common shares.