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Q. Equity Method of Accounting?

Equity Method of Accounting - Investors cost basis is adjusted up or down (according to the % of stock ownership) as investee's retained earnings fluctuation; used for long-term investments in equity securities of affiliate where holder can exert vital influence; 20% ownership or greater is arbitrarily assumed to have significant influence over the investee.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9578010

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