Question
What is the reason dividends are not counted as revenue but, rather, reduce the investment account when using the equity method? 1. Dividends are not
What is the reason dividends are not counted as revenue but, rather, reduce the investment account when using the equity method?
1. Dividends are not guaranteed.
2. Dividends are subject to double taxation.
3. The equity method does not qualify as U.S. GAAP, therefore it does not properly recognize revenue.
4. Dividends would double-count the impact of income earned by the investee and investor.
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Audit Risk Management Driving Audit Value The Best Practice Strategy Guide For Minimising The Audit Risks And Achieving The Internal Audit Strategies And Objectives Volume 2
Authors: Hans Beumer
1st Edition
3906861155, 978-3906861159
