Final answer:
Under FASB guidelines, when a not-for-profit has an economic interest and appoints a majority of a related entity's board, consolidation of financial statements is required. OPTION D IS ANSWER
Step-by-step explanation:
When there is an economic interest and a not-for-profit appoints a majority of a related entity's governing board, the Financial Accounting Standards Board (FASB) states that consolidation is required.
The consolidation of financial statements includes combining the financial information of two or more legally separate but affiliated entities into one set of financial statements. This practice is guided by FASB's Accounting Standards Codification. . OPTION D IS ANSWER