The equity method of accounting for long-term investments in shares should be used when the investor has
Question:
The equity method of accounting for long-term investments in shares should be used when the investor has significant influence over an associate and owns:
a. between 20% and 50% of the associate’s ordinary shares.
b. 30% or more of the associate’s ordinary shares.
c. more than 50% of the associate’s ordinary shares.
d. less than 20% of the associate’s ordinary shares.
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The equity method of accounting for longterm investments in shares should be used when the investor has significant influence over an associate and owns a between 20 and 50 of the associates ordinary shares Under the equity method if an investor owns between 20 and 50 of the associates ordinary shares it is presumed to have significant influence over the associate and should account for the investment ...View the full answer
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Related Book For 
Financial Accounting With International Financial Reporting Standards
ISBN: 9781119787051
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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