Under the equity method of accounting for investments, when will the investor recognize its share of the earnings?

Question

Quizplus · Accepted Answer

Under the equity method of accounting, the investor recognizes its share of the earnings when the earnings are reported by the investee in its financial statements. This is because the investor recognizes its share of the investee's income as the income accrues, not when it is actually received in the form of dividends or when the investment is sold.

Under the Equity Method of Accounting for Investments, When Will