A number of losses or other factors could indicate that the market value of a investment accounted for under the equity method has decreased to an amount by below its current book value. If that decrease is considered not temporary (other than temporary, the investor must:

a. Recognize an impairment loss in the statement of income and expenses and reduce the book value of the investment to market value. Will continue to post the investment under the equity method. b. Recognize an impairment loss in the statement of income and expenses and reduce the book value of the investment to market value. Will NOT continue counting investment under the equity method. c. You will ignore the decrease in market value, because you are using the method patrimonial. d. You will recognize the loss as OCI