Question

The exact reporting requirements for non influential investments depend on whether the investments are classified as ________?

1) Influential
2) Non-influential
3) Significant
4) Unimportant

Answer 1

The reporting requirements for non-influential investments depend on their classification as influential or non-influential. On the other hand, if the investments are classified as non-influential, they are reported using the cost method and include the original purchase cost of the investment.

Step-by-step explanation:

The exact reporting requirements for non-influential investments depend on whether the investments are classified as influential or non-influential. If the investments are classified as influential, they need to be reported using the equity method and include proportionate share of the investee's net income or loss. On the other hand, if the investments are classified as non-influential, they are reported using the cost method and include the original purchase cost of the investment.

The reporting requirements for non-influential investments depend on their classification as influential or non-influential. On the other hand, if the investments are classified as non-influential, they are reported using the cost method and include the original purchase cost of the investment they need to be reported using the equity method and include proportionate share of the investee's net income or loss.