Gaap for investments in equity securities


Task: Which one is NOT a correct practice under the current GAAP for investments in equity securities?

A) When a firm has 15% of the ownership and the fair value is not available, the firm should use the equity method

B) When a firm has 35% of the ownership, the firm should use the equity method.

C) When a firm has 55% of the ownership, the firm should use the consolidation

D) Although a firm has less than 50% of the ownership, if the firm actually controls the business operation of the target firm, the firm should use the consolidation

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Finance Basics: Gaap for investments in equity securities
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