Discuss why, of the following methods, equity method is deemed to be most appropriate to account for

Fantastic news! We've Found the answer you've been seeking!

Question:

Discuss why, of the following methods, equity method is deemed to be most appropriate to account for “Investment in associate” in the consolidated financial statements?

(i) at cost

(ii) equity method

(iii) full consolidation

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

See More Books

Posted Date: May 21, 2022 06:12 AM

See More Questions

Discuss the strengths and weaknesses of the following methods for establishing base pay in international contexts: home country-based pay, headquarters-based pay, and host country-based pay.
In the current year, Moore Corporation is deemed to be a PHC and reports the following results: Taxable income $200,000 Dividend received from an 18%-owned domestic corporation 50,000 Dividends paid...
In the current year, Kennedy Corporation is deemed to be a PHC and reports the following results: Taxable income $400,000 Federal income taxes 136,000 Dividends paid to Marlene, Kennedys sole...
A horizontal jet of water (at 10C) that is 6 cm in diameter and has a velocity of 20 m/s is deflected by the vane as shown. If the vane is moving at a rate of 7 m/s in the x-direction, what...
List the major types of audit working papers and give a brief explanation of each. For example: One type of audit working paper is an account analysis. This working paper shows the changes that...
Solve the given problems. Use a ruler and protractor as in Examples 6 and 7. A ship travels 20 km in a direction of 30 south of east, then turns and goes due south for another 40 km, and finally...
Why is it important to implement an ITSM program?
On December 31, 2012, Laraboo Corp. issues 11%, 10-year convertible bonds payable with a maturity value of $4,000,000. The semiannual interest dates are June 30 and December 31. The market interest...
Determine T. Let 7: R2 R2 is defined as follows: T(x, y) = (2x+y, x-2y).
There is a database that contains a website's traffic data over a period of 30 days. The first table contains users' information including the user type (user, crawler, admin). The second table...
A random sample of 25 employees of a local company has been measured. A 95% confidence interval estimate for the mean systolic blood pressure for all company employees is 123 to 139. Which of the...
The current price of crude oil is $32.00 per barrel. Forward prices for 3, 6, 9, and 12 months are $31.37, 830.75, $30.14, and $29.54. Assuming a 2% continuously-compounded annual risk-free rate. (i)...
What is the year 3 AFN per balance sheet What is year 3 AFN using equation formula What is the max internal growth rate What is the max sustainable growth rate Revenue Cost of Goods Sold SG&A...
There are six encircled candles in the chart which are the peak and trough of the trend. Research, enumerate and discuss the events and factors that occur during these period and justify why these...
Let (,F,P) be a probability space and let (We:t>0} be a standard Wiener process. 3 (a) (5p) Bachelier Model (Arithmetic Brownian Motion) Suppose X, follows the arithmetic Brownian motion with SDE dX...
This table "Transaction Entry" keeps each transaction made by each sales representatives. The SalesPrice and UnitCost are both for per unit of goods. Use the table "UnitCost" to Complete the Column...
A billet 75 mm long and 25 mm in diameter is to be extruded in a direct extrusion * operation with extrusion ratio rx=4. The extrude has a round cross section. The work metal has a strength...
Write an essay describing the differing approaches of nursing leaders and managers to issues in practice. To complete this assignment, do the following: 1. Select an issue from the following list:...
Sodesta Company offers volume discounts to its customers. Customers buying over $ 100,000 receive a 1% discount. Customers buying over $ 200,000 receive a 3% discount. Sodesta also offers sales...
Using the information from BE10- 15, prepare the journal entry to record the write- down to market for the Stain Resistant model under both the direct and indirect methods. Assume that Count Clothing...
How do firms report a material subsequent event on the financial statements?
How do business classes differ from utility classes? Provide one example for each.
How does encapsulation protect the object from an intruder?
What is the difference between the operations of a class and its attributes?

Discuss why, of the following methods, equity method is deemed to be most appropriate to account for

Question:

Expert Answer:

Ans When any investment is made an investment in associate or jointventure investor re... View the full answer

Intermediate Accounting

Students also viewed these accounting questions