BU457 Lecture Notes - Lecture 10: Equity Method, Current Asset, Impaired Asset
Document Summary
Chapter 2: investments in equity securities: strategic equity investment vs. nonstrategic equity. Fv changes are reported in ni mandatory in 2015: investments not held for short-term trading can initially record fv changes in oci, therefore, gains and losses are never recycled through ni (avoids a. * no venture can exercise unilateral control as determined through a contractual arrangement: control, consolidation fs are prepared meaning that the assets and liabilities of the associate are now reported on the parents. Fs replacing the investment in associate account: control: the power to direct the activities of another entity to generate variable returns. Note: usually shows the highest current ratio as this is a short term trading investment: fvtoci, not held for short-term trading like previously done for. Note: entities must group items as either recycled through ni or not recycled through ni: example fvtpl vs. afs vs. fvtoci, initial investment is recorded at cost as an investment in.
