How are most significant influence investments in equity securities reported on the investor's financial statements?

Question

Quizplus · Accepted Answer

Most significant influence investments in equity securities are reported on the investor's financial statements using the equity method. Under the equity method, the investor reports its proportionate share of the investee's net income in its own income statement and records its investment as an asset on the balance sheet. This method is appropriate when the investor has the ability to influence the operating and financial policies of the investee but does not have control over it.

How Are Most Significant Influence Investments in Equity Securities Reported