BUS 322 Lecture Notes - Equity Method, Cash Flow, Interest Rate

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 322
• Professor: Maureen Fizzell

Document Summary

Contractual right: to receive cash of other financial asset, to exchange financial asset/liabilities with another party in favour of the entity. The investor recognizes investment income as the investee earns income by debiting investment account (a) and crediting investment income (se). When cash is received, cash is debited and investment account is credited. Any payment in excess of (or less than) the investor"s share of book value: Because the equity method recognizes and reports the investor"s share of the associate"s income, the type of income reported should remain the same: i. e. income reported in oci in another entity must also be reported in oci. Yes discounted updated expected cash flow with original effective rate. Yes discounted updated expected cash flow with original effective rate or current market rate. Rate used to discount the impaired cash flows.