Chapter 17: Intercorporate Equity Investments . Relevant circumstances Consolidation Pooling of interests Purchase method New entity approach Pro rata Equity method Fair value method Special Purpose Entity. Reporting on Intercorporate Equity Investments.
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Consolidate per ARB 51 (SFAS No. 94)
SFAS No. 141 and 142
20% to 50%
Equity Accounting per APB Opinion No. 18
Fair (market) value for both trading
securities and available-for-sale securities...
The relevant circumstances that justify differential accounting for intercorporate equity investments depend on the level of influence held by the investor
Asserts, rather than demonstrates, that consolidated reporting (and the fictional accounting entity thus created) is more relevant to investors than are separate entity statements in which the reporting entity is the legal entity