When one firm controls the entire decision making process of another firm,
a. one set of financial statements are created for the combined assets, liabilities, revenues and expenses of both firms.
b. the investor-investee relationship results in separate external financial reporting for each firm's assets, liabilities, revenues and expenses.
c. such control may result from majority voting stock ownership or contracts with a variable interest entity.
d. for reporting purposes the two companies are considered to be a single economic entity.