ASPE allows an accounting policy choice to apply either the cost or equity method to the investment when significant influence exists. Since any of these methods is acceptable under ASPE, Rico's decision should be based on DFEL's results when they are known. It is important to note that once a policy choice for DFEL is made, it cannot be changed. As DFEL is profitable, the equity method would enhance Orion's income by $3,750 ($25,000 × 15%) and would meet the object of showing increased profitability, which the bank will "be monitoring." However, if there are years where DFEL has a loss, the use of the cost method would best meet Rico's reporting objectives because the loss would not have to be recognized. The cost method is simpler