Question
a. Explain the standards that determine if an investor company will report its investment in an investee company using the equity method or will consolidate
a. Explain the standards that determine if an investor company will report its investment in an investee company using the equity method or will consolidate the investee.
b. Discuss why the investor company may prefer the equity method.
c. Explain how the equity-method of accounting for investments effects the financial ratios of the investor company.
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
