Response to the FASB Discussion Memorandum "Consolidation Policy and Procedures"

The Financial Accounting Standard Committee of the American Accounting Association responded to the FASB Discussion Memorandum (DM) on "Consolidation Policy and Procedures." The Committee is pleased that the issues addressed in the DM are part of a broad project designed to cover all aspects of accounting for affiliations among entities. In general, the choice of consolidation method and other means of reporting the results of operations for affiliated entities should be consistent with the objective of improving the information provided to users.