When an investor has insignificant influence over another company's stock,presumably when it owns more than 20%,the stock investment is reported at fair value.

Question

Quizplus · Accepted Answer

When an investor owns more than 20% of another company's stock, it is considered to have significant influence and the equity method is used to report the investment on the balance sheet, not fair value. If the investor owns less than 20%, the investment would be reported at fair value.

When an Investor Has Insignificant Influence Over Another Company's Stock,presumably