Question: While working with your study group, one of your fellow students makes the following statement: There is no substantive difference in the accounting for equity

While working with your study group, one of your fellow students makes the following statement:
“There is no substantive difference in the accounting for equity investments. They are all carried at fair value and so, ultimately, all changes in the fair value of the investments flow through net income.”

Required
Evaluate the student’s statement and identify any errors in their reasoning.

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