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If an Investor's Ownership Interest in a Significant Influence Investment

Question 25

Multiple Choice

If an investor's ownership interest in a significant influence investment increases or decreases, how are changes from accounting at fair value to the use of the Equity Method (or vice-versa) to be handled?


A) Changes from the Equity Method are to be handled prospectively, while changes to the Equity Method are to be handled retroactively.
B) Changes from the Equity Method are to be handled retroactively, while changes to the Equity Method are to be handled prospectively.
C) Any change is to be handled retroactively.
D) Any change is to be handled prospectively.

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