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The parent company applies the equity methoed to investments in investee retroactively according to the change in the level of ownership giving it a significant control and majority voting.
Dear Mr. Khalid,
Thank you for you interest, below you will find more clarify to my question,
In01/01/2010 a parent ( mak ) company acquisition of10% of investee ( dac ), in this case mak should used cost method , In01/01/2012 mak acquisition of30% of investee dac and this share given mak the ability to exercise significent influence on the investee (dac), here the parant company will apply the equity method of accounting for its investement in the investee.
My question was, does the parent company applying the equity method retroactively?
Dear Sir'
Can u explain your question a little more?
