The equity method is the required reporting method for all less-than-majority owned companies.

Name: The equity method is the required reporting method for all less-than-majority owned companies.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The equity method is only required for companies that have significant influence (20-50% ownership) over the investee company. For companies that have less than 20% ownership, the cost method is used for reporting. Therefore, the statement is false.

The Equity Method Is the Required Reporting Method for All