Securities/Accounting Methods Flashcards
1
Q
equity method
A
ending carrying amount = initial carrying amount plus the investor’s share of earnings minus the investor’s share of dividends
2
Q
Method Change
A
Changing from the equity method to the cost method does not require retroactive adjustment.
3
Q
EM: income from investment
A
Base + portion of income - amortization adjustments (no dividends)
4
Q
EM: total revenue
A
Base + portion of income - portion dividends
