How would any management fees charged by a Parent Company to its Subsidiary be accounted for during the consolidation process? Multiple Choice No special accounting treatment is required, since this would have no effect on Consolidated Net Income. The Parent Company's profit on the rendering of management services would be charged to retained earnings. Both the Parent's management fees and the subsidiary's related expense would be eliminated when preparing Consolidated Financial Statements. The Parent Company would only record its pro rata share of any management revenues