3.1 Investments in Equity Securities Flashcards
1
Q
Ownership interest in an entity
A
Equity security
2
Q
Equity securities are characterized by the
A
percentage of ownership the investor has over the investee
3
Q
Presumed influence based on the ownership interest held:
A
0-20%: Little or none
20-50%: Significant
50-100%: Control
4
Q
Accounting method for little or none presumed influences
A
Fair value measurement
5
Q
Accounting method for significant presumed influences
A
Equity method or FVO
6
Q
Accounting method for control presumed influences
A
Consolidation
7
Q
When there’s little or no influence, dividends received from investments in equity securities are reported as
A
dividend income in the income statement
8
Q
Impairment loss
A
carrying amount - fair value
