An investor uses the equity method to account for investments in ordinary shares. the purchase price implies a fair value

Sagot :

Answer:

It is an entity over which the investor has significant influence.The power to participate in the financial and operating policy decisions of an entity.All of these statements are true about significance influence.Included in the carrying amount of the investment and not amortized.The investor should use the equity method unless circumstances indicate that it is unable to exercise significant influence over the investee.Distributions received from the investee are accounted for a dividend income.After adjusting for the preference dividends, whether or not the dividends have been declared.The investor ceases to have significant influence over the associate.

Explanation:

Sana po makatulong ito ^w^