Purchase Solution

Equity-method reporting situations

Not what you're looking for?

Ask Custom Question

In what types of situations could it be appropriate to use equity-method reporting even though the investor does not hold voting common stock of the investee? Explain.

Purchase this Solution

Solution Summary

Your tutorial is 225 words and gives several examples of significant influence without having voting common stock.

Solution Preview

You use the equity method when you can significantly influenced (but not control) a partially owned subsidiary. This is presumed, under U.S. accounting standards, to mean generally 20-50% of the voting stock. This "bright line" is just a guide and the facts and circumstances can dictate significant influence with more ...

Solution provided by:
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution

Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.


This tests some key elements of major motivation theories.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.