While working with your study group, one of your fellow students makes the following statement: There is

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While working with your study group, one of your fellow students makes the following statement:
“There is no substantive difference in the accounting for equity investments. They are all carried at fair value and so, ultimately, all changes in the fair value of the investments flow through net income.”


Required
Evaluate the student’s statement and identify any errors in their reasoning.

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Related Book For  book-img-for-question

Understanding Financial Accounting

ISBN: 9781119715474

3rd Canadian Edition

Authors: Christopher D. Burnley

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