What's the difference between "Stockholders' Equity" and "Stockholders' Equity - Parent"? Which should I use in calculating the return on equity?

Balance sheet summary

  • What is an “equity-Parent”? – Lawrence Aug 19 '20 at 6:43
  • Is this "stockholder's equity-Parent" from an XBRL taxonomy? – Flux Aug 19 '20 at 7:41
  • It came from a balance sheet I was studying..I updated my post above to include the balance sheet summary – gaston Aug 19 '20 at 8:25

Most likely, this is referring to the parent company. The rules regulating when the parent company's stock must be reported on the subsidiary's financial statements depend largely on how much of the subsidiary's income is attributable to the parent company. The rules governing consolidated financial statements are quite technical and a bit complicated. Usually, whenever an item in the financial statements says "parent" it is showing the parent company's influence on that item. If the parent company had a substantial influence on the subsidiary's financial statements, then the subsidiary will usually show the part attributable to the parent company on a separate line.

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