Under equity reporting, why are unrealized profits from downstream sales deducted from the investors equity in the

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Under equity reporting, why are unrealized profits from downstream sales deducted from the investor’s equity in the earnings of the investee instead of from the parent’s own earnings?

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Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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Question Posted: Mar 13, 2015 07:52 AM

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Under equity reporting, why are unrealized profits from downstream sales deducted from the investors equity in the

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Under equity basis reporting the equity in earnings captures all of the effects of ...View the full answer

Advanced Financial Accounting

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