Magnus Co. controls Anand Co. and wants to prepare consolidated financial statements. However, the controller of Magnus Co. did not study ACCY 410 course at the UIUC and does not know whether the retained earnings of Anand Co. should (or should not) be reported in the consolidated retained earnings, in the consolidated financial statements.
Research and cite a specific paragraph in the Accounting Standard Codification that can help the controller to determine whether retained earnings of the subsidiary should be reported in the consolidated retained earnings. Unless specifically requested, your response should not cite implementation guidance and illustrations.
FASB ASC - - -

Retained earnings are profits of the business after deduction of dividend. It is located in the equity section of the statement of financial position/balance sheet of the reporting entity

Calculated retained earnings +profit/loss for the year - dividends

A

A subsidiary must be consolidated and reported by an entity with an interest in it if it has a majority stake in the company of over 50 percent voting shares

FAS 160 has replaced ARB 51