Subsidiary

Home » CMA Glossary Term » Financial Statements and Reporting » Subsidiary

A subsidiary in accounting refers to a company that is controlled by another entity, known as the parent company, through ownership of more than 50% of its voting stock. Subsidiaries are separate legal entities, but their financial activities are often consolidated with the parent company’s financial statements for reporting purposes. This consolidation provides a comprehensive view of the financial position and performance of the entire corporate group.

CMA Prep Course

CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.