Air FranceKLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AFs financial statements and disclosure notes for the year ended December 31, 2017. This material is available under the Finance link at the companys website. You have to get the information on Air France's website in order to answer this problem.

Required:

1. Read Notes 4.3 and 21.

a. When AF can exercise significant influence over an investee, what accounting approach does it use to account for the investment? How does AF determine if it can exercise significant influence?

b. If AF is involved in a joint venture, what accounting approach does it use to account for the investment?

c. What is the carrying value of AFs equity-method investments in its December 31, 2017, balance sheet?

d. How did AFs equity-method investments affect AFs 2017 net income from continuing operations?