A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Question

Quizplus · Accepted Answer

Equity securities with controlling influence generally refer to investments in which the investor has a significant influence over the decisions made by the investee, such as through ownership of a majority of the voting shares. This level of influence allows the investor to have a controlling interest in the investee's operations, and therefore qualifies as a long-term investment classified as equity securities with controlling influence.

A Long-Term Investment Classified as Equity Securities with Controlling Influence