This chapter discusses the circumstances under which presentation of parent company financial statements may be appropriate or required. Parent company financial statements present the parent company's investment in its subsidiaries as a single line item on the balance sheet. The amount recorded as the investment reflects the parent’s proportionate share of the subsidiary’s net assets. Similarly, the parent company financial statements reflect the results of operations of the subsidiary as a single line item reflecting the parent's proportionate results. In addition to covering presentation and disclosure requirements, the chapter also outlines methodologies to be applied in preparing and presenting parent company financial statements.