GTI Corporation acquired a 15 interest in DDA Partnership on February 15 of the current year GTI is pre paring its financial statements for the first quarter and needs to determine how to report the investment GTI realizes that it will either report at cost, fair value, or under the equity method A...

1 If an entity has a related financial asset and financial liability and if one is reported on a fai ...

GTI Corporation acquired a 15% interest in DDA Partnership on February 15 of the current year. GTI

Question:

GTI acquired a 15% interest in DDA on February 15 of the current year. GTI is pre-paring its for the first quarter and needs to determine how to report the investment. GTI realizes that it will either report at cost, fair value, or under the equity method. Auditors have pointed them to ASC 323 Investments – Equity Method and Joint Ventures and ASC 825- 10- 25 Financial Instruments – Over-all – Recognition. Based on your review of the pertinent codification, how should GTI report its investment in DDA Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...