A change from the cost method to the equity method of, Ask an Expert

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A change from the cost method to the equity method of accounting for an investment in common stock resulting from an increase in the number of shares help by the investor requires:

A. only footnotes

b. that the cumulative amount of the change be shown as a line item on the income statement.

C. that the change be account for as an unrealized gain included in other comprehensive income.

d. retroactive restatement as if the investor always had used the equity method.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9409503

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