The equity method of accounting for a consolidated company probably will be used when the proportion of its voting shares held is as low as:

Question

Quizplus · Accepted Answer

The equity method is used when the investor has demonstrated significant influence over the investee, regardless of the percentage of voting shares held. This influence can be achieved in various ways, such as through board representation or significant commercial transactions between the two companies. Therefore, the correct answer is D, as any percent can be sufficient to establish significant influence.

The Equity Method of Accounting for a Consolidated Company Probably