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【单选题】
During Year 5, XYZ Ltd. Purchased all of the 100,000 outstanding Class B shared of Sub Limited. Each share carries one vote. The previous owner, Mr. Bill, retained all 80,000 outstanding Class A share of Sub, each also carrying one vote. In order to avoid sudden changes, Mr. Bill stipulated in the sale agreement that he was to retain the right to veto management appointments for Sub and to approve any significant transactions of Sub. How should XYZ report its investment in Sub assuming that the fair value of Sub’s shares is not readily available ?A.
full consolidation
B.
proportionate consolidation
C.
equity method
D.
cost method
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