The accounting profession has concluded that an investment of more than 50 percent of the voting stock of an investee should lead to a presumption of significant influence over an investee.

Question

Quizplus · Accepted Answer

The accounting profession generally concludes that owning more than 50 percent of the voting stock of an investee indicates control, not just significant influence. Significant influence is typically presumed with ownership of 20-50 percent.

The Accounting Profession Has Concluded That an Investment of More