2.25 Reporting Entity
Although not specifically defined in ASC 810-10-20, the term “reporting entity” as used in ASC 810-10 refers to the entity that performs the consolidation analysis (i.e., the party potentially consolidating a legal entity).
The focus of this Roadmap is on accounting for a noncontrolling interest resulting from the consolidation of a legal entity that is not wholly owned by a single party. Therefore, as used in this Roadmap, “reporting entity” refers to an entity that consolidates a subsidiary in which one or more noncontrolling interests are held. The reporting entity may also be referred to as the parent.