A minority active investment is accounted for by the

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A minority active investment refers to an investment made in a company where the investor has significant influence but not control over the investee. In such cases, the equity method of accounting is used, which requires the investor to recognize its share of the investee's profits or losses in its income statement, along with any changes to the investee's equity. The cost method is used for investments where the investor has no significant influence or control, while the lower of cost or market method is used for valuing inventories. The speculative investment method is not a recognized accounting method.

A Minority Active Investment Is Accounted for by the