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The Equity Method of Accounting--Respond to this! Must post first. Subscribe This accounting method is all about the significant influence an investor holds over
The Equity Method of Accounting--Respond to this! Must post first. Subscribe This accounting method is all about the "significant influence" an investor holds over an investee. And reflecting the "value" of the investee company in the STOCK INVESTMENT account. So why do you think we increase that account just because the investee declares earnings? And why do we reduce that account when we get CASH dividends from the investee?
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College Accounting
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
11th edition
978-1111528300, 1111528128, 1111528306, 978-1111528126
