If a company owns between 20 and 50% of the voting share of an investee it must normally use the equity method to account for its investment.

Question

Quizplus · Accepted Answer

According to International Financial Reporting Standards (IFRS), when a company owns between 20% and 50% of the voting share of an investee, it is considered to have significant influence over the investee and therefore must use the equity method to account for its investment.

If a Company Owns Between 20 and 50% of the Voting