What should NOT be disclosed if a reporting entity controls a not-for-profit entity without a majority voting interest?

The correct answer emphasizes that there is no requirement to disclose control through a majority voting interest if a reporting entity controls a not-for-profit entity without holding a majority of the voting interests. This situation means that the reporting entity has effective control over the not-for-profit entity, perhaps through means such as governance agreements or financial dependencies, rather than through direct majority ownership.

In cases where an organization does control another entity without the majority voting interest, the disclosures that need to be made typically revolve around the nature of the relationship and details about the entities involved. However, mentioning control through a majority voting interest is irrelevant and does not apply because the reporting entity does not hold such interest in the given context.

In contrast, other options highlight elements that are indeed necessary for transparency in financial reporting. Identifying the other entity and the nature of its relationship, along with providing summarized financial data, is crucial for users of the financial statements to understand the control dynamics and the financial implications of that control. Additionally, disclosures required under FASB ASC 850-10-50 paragraphs 1-6 are pertinent as they set standards for related party transactions which would include such control relationships. Thus, recognizing that control exists without a majority interest does lead to certain necessary disclosures, while