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Q: A controlling influence over the investee is based on the investor owning voting stock exceeding?
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Use of the Cost or Equity Method?

The Cost method is used when investor does not exercise significant influence. The equity method is used to account for investments if significant influence can be exercised by the investor over the investee.


When an investor sells shares of its investee company what happens?

If the investor sells the entire investment or any portion of it ,the equity method is applied consistently until the date of disposal.A gain or lss is computed based on the adjusted book value at that time.Remaining shares are accounted for by means of either equity method or the fair-value method , depending on the investor's subsequent ability to significantly influence the investee


The controlling investor is called the what?

Parent


How does the fair value and equity methods of accounting for investments in stocks subsequent to acquisition differ?

Under the fair value method, investments are originally recorded at cost and are reported at fair value. Dividends are reported as other revenues and gains. Under the equity method, investments are originally recorded at cost. Subsequently, the investment account is adjusted for the investor's share of the investee's net income or loss and this amount is recognized in the income of the investor. Dividends received from the investee are reductions in the investment account.


When is an item considered material?

If it is likely to influence the decision of an investor or creditor.


Can people influence the stock market?

People can influence the stock market thru Investor confidence, company financial health and statements, political factors, and the current state of the economy all affect the stock market


Can an individual investor sell its shells without a secondary market?

what is a secondary investor what is a secondary investor what is a secondary investor


What is a sentence with the word investor?

The investor decided to back out of the project.I am an investor for this business.We need an investor if the plan is to go ahead.


What is an investor?

An Investor is someone who buys stocks..Eg..I am a investor becasue i by into a stock


What are the three basic factors that influence the required rate of return for an investor?

1. real rate of return 2. inflation premium 3. risk premium


Can a speculator be investor?

yes. speculators are a type of investor.


What is Investor AB's population?

The population of Investor AB is 2,010.