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When the investor's ownership changes from passive to significant influence (or vice versa)... No changes are required other than a disclosure in the financial statement

image text in transcribed When the investor's ownership changes from passive to significant influence (or vice versa)... No changes are required other than a disclosure in the financial statement notes. The original accounting method must continue to be used as its irrevocable once selected and used. The investment would be reclassed on the date of the ownership change and the accounting method would change prospectively. A retrospective adjustment is required to the date of the original investment

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