An investor that significantly influences the operations of an investee should account for the investment using the equity method.

Question

Quizplus · Accepted Answer

According to accounting standards, an investor that significantly influences the operations of an investee should account for the investment using the equity method. This means that the investor recognizes their share of the investee's net assets and profits or losses on their own financial statements.

An Investor That Significantly Influences the Operations of an Investee