If company is currently reviewing several proposals whereby we are considering investing in other companies. For example, one proposal is to buy 20% of a QLD-based company (a private company). And there is another proposal where we already own 35% of a WA based company, and we are considering buying another 35%. Please shed some light on how to account for these investments in our accounting records?

Answer rating: 100% (QA)

When investing in other companies the accounting treatment will depend on the nature of the investment and the level of control that your company has ... View the full answer