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

According to Generally Accepted Accounting Principles (GAAP), investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method. If a government has significant influence over a company, then the equity method can be used to record the investment on the government's financial statements. Otherwise, fair market value must be used.

Investments Should Be Recorded at Fair Market Value Unless a Government