Which of the following is not a true statement regarding SFAS No. 94?
a. SFAS No. 94 rejected the exclusionary arguments of ARB 51 and ARB 43.
b. SFAS No. 94 requires all majority-owned companies to be consolidated except when control is only temporary or if the majority owner does not have effective control.
c. SFAS No. 94 says that neither legal reorganization nor bankruptcy is an instance of non-control by a majority owner.
d. There is some evidence that the FASB was attempting to “level the playing field” in SFAS No. 94 by requiring companies to provide more information to financial statement users who might not have been aware of debt levels carried by unconsolidated subsidiaries.
ANSWER: C
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