ACC 4100 Chapter Notes - Chapter ch 1: Historical Cost, Intangible Asset, Financial Statement

35 views5 pages

Document Summary

If fair values are unavailable, investment is reported at cost: cost method: applied to investments without a readily determinable fair value. When the fair value of an investment in equity securities is not readily determinable, and the investment provides neither significant influence nor control, the investment may be measured at cost. The investment remains at cost unless: a demonstrable impairment occurs for the investment, or, an observable price change occurs for identical or similar investments of the same issuer. Current financial reporting standards allow firms to elect to use fair value for any new investment in equity shares including those where the equity method would otherwise apply. Investee dividends and changes in fair value over time are recognized as income. This book assumes all investee dividends are declared and paid in the same reporting period. If that ability has been lost, the fair-value method is subsequently used.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions