subsidiary showing individual financial statements that are not presented in the CONSOLIDATED FINANCIAL STATEMENTS. The EQUITY METHOD of accounting is used for unconsolidated subsidiaries. A subsidiary is not consolidated even though more than 50% of voting common stock is owned by the parent when one of the following situations exists: (1) parent is not in actual control of subsidiary (i.e., subsidiary is in a politically unstable foreign country); (2) parent has only temporary control of the subsidiary; or (3) the nature of the subsidiary's operations are significantly different than those of the parent.