Effect of Different Accounting Methods for Intercorporate Investments on the Financial Statements
Equity Method The equity method of accounting provides a more objective basis for reporting investment income. The investor is required to recognize income as earned rather than when dividends are received. Thus, an equity investment is reported as a single…
Comparison between IFRS 17 and US GAAP
Fair Value Option A fair value option is an option to recognize an equity method investment at fair value at the time of initial recognition. Under IFRS, the fair value option is only available to venture capitalists and unit trusts….
