In computing diluted earnings for a parent company, it may be necessary to replace the parents equity

Question:

In computing diluted earnings for a parent company, it may be necessary to replace the parent’s equity in subsidiary realized income with the parent company’s equity in the subsidiary’s diluted earnings. Does this replacement calculation involve unrealized profits that are included in the parent company’s income from subsidiary?

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!