Register now or log in to join your professional community.
It should be evaluated using Fair Value, equity for more that20% till50% and more that50% it should be consolidation , less that20% it's cost method and to be evaluated based on the fair value as if it's hold for sale
The Answer is1 i.e Fair Value of shares
The standard or preferred method of accounting in these kind of cases is 'Fair Value Method'. The changes in value should be recognised as Earnings.
It should be evaluated using Fair Value
These shares should be reported using equity method .becuase is % is less than20 as well as50%.