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A corporation acquires a 30% voting interest in another corporation. In this situation, the long-term investment is

is generally accounted for on the investor corporation’s books using which of the following reporting methods?

A. Lower-of-cost-or-market.

B. Cost.

C. Consolidated.

D. Equity.

Accounting Auditing CMA Economics Banking
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Question added by Deleted user
Date Posted: 2015/03/06
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VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Reporting method:   Equity ---   Option    D

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer D is the correct answer 

IMRAN ALI MOHAMMED
by IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

As the Corporation has gained significant influence in other corporation by acquiring30%, the investment should be by reported by using 'Equity Value Method'.

Syed Ammar
by Syed Ammar , Senior Accounts Officer , The City Schools (Group Head office)

C. Consolidated.   ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

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