Answer:
Operating results appearing on the parent's financial records reflect consolidated totals.
Explanation:
When financial statements are prepared then all the entities having a subsidiary are required to prepare a consolidated financial statements.
As for the external requirements the company need to follow the equity method.
As for the internal requirements there are no statutory guidelines, although if the company uses equity method then it is preferable, as the operating parenting company need to show consolidated balances on the balance sheet.
And this method will be in compliance and will be beneficial for internal controls.
Thus, the correct answer is:
Operating results appearing on the parent's financial records reflect consolidated totals.
