The treatment of equity investments depends on a number of factors,including:

Question

Quizplus · Accepted Answer

The treatment of equity investments depends on whether the investee entity is in the life or general insurance industry, as well as whether or not the investor has significant influence over the investee. The date of purchase is not a significant factor in determining the treatment of equity investments. Therefore, option D is the best choice as it includes both of the relevant factors. Option E is also technically correct, but it includes an irrelevant factor (the date of purchase).

The Treatment of Equity Investments Depends on a Number of Factors,including