GAAP presumes that ownership of less than 20% of another company's voting shares constitutes a passive investment.

Name: GAAP presumes that ownership of less than 20% of another company's voting shares constitutes a passive investment.
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

According to GAAP, ownership of less than 20% of another company's voting shares is presumed to be a passive investment. This presumption may be rebutted if the investor has significant influence over the investee.

GAAP Presumes That Ownership of Less Than 20% of Another