The investor's method of accounting for long?term equity securities depends on the ability of the investor to influence the operations of the investee.

Question

Quizplus · Accepted Answer

If the investor has significant influence over the investee, then the equity securities are accounted for using the equity method. If the investor does not have significant influence, then the securities are accounted for using the fair value method.

The Investor's Method of Accounting for Long?term Equity Securities Depends