Investment in equity shares of another company


Question 1: Describe the various methods of accounting for an investment in equity shares of another company.

Question 2: Identify the sole criterion for applying the equity method of accounting and guidance in assessing whether the criterion is met.

Question 3: Explain the rationale and reporting implications of the fair-value option for investments otherwise accounted for by the equity method.

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Finance Basics: Investment in equity shares of another company
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