The accounting for investments in another entity's equity instruments depends mainly on

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The accounting for investments in another entity's equity instruments depends mainly on the level of influence the investor is able to exert, which determines whether the investment is classified as a fair value through profit or loss, available-for-sale, or equity method investment. The level of influence the investor actually exerts and other factors such as dividends and quality of earnings are also considered, but are not the main determinant of the accounting treatment.

The Accounting for Investments in Another Entity's Equity Instruments Depends