The parent/noncontrolling interest attribution method is an attribution model specific to upstream transactions under which the income deferral arising from the eliminating entry (pending the ultimate sale of the goods to third parties) is attributed to the parent and noncontrolling interests. When applying this method, the reporting entity attributes the income deferral to the parent and noncontrolling interest holders in proportion to their ownership interests in the absence of any identified contractual arrangements that specify otherwise (see Section 6.4.2). Refer to Example 6-8 for an illustration of accounting for upstream transactions in circumstances involving noncontrolling interests.
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