Is the economic entity or the parent concept more consistent with the principles addressed in the FASB\'s conceptual framework?

The economic entity is more consistent with the principles addressed in the FASB's conceptual framework. It is an integral part of the FASB's conceptual framework and is named specifically in SFAC No.5 as one of the basic assumptions in accounting. The economic entity assumption views economic activity as being related to a particular unit of accountability, the standard indicates that a parent and its subsidiaries represent one economic unit even though they may include several legal entities.