Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Question

Quizplus · Accepted Answer

GASB standards require equity securities that have readily determinable fair values to be reported in the balance at fair value. If a government has sufficient investments in a company to justify the equity method of accounting, then the equity method of accounting would be used.

Equity Investments Should Be Recorded at Fair Market Value Unless