Respuesta :
The cumulative profits that accrue to the parent are shown as consolidated retained earnings, which is a part of shareholders equity on a consolidated balance sheet.
What is retained earning?
Retained profits are the sum of a company's profits that are left over after paying all of its direct and indirect costs, income taxes, and dividends to shareholders. This is the portion of the company's equity that could be used, for instance, to pay for new machinery purchases, research & development, and marketing.
What does consolidated net income mean?
In this context, "consolidated net income" refers to the net income (or loss) of the Borrower and its Subsidiaries for the time period treated as a single accounting period as calculated in accordance with the applicable GAAP.
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