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.