Investors that are not parent entities must record all equity entries in their own records.

Question

Quizplus · Accepted Answer

Investors that are not parent entities only need to record equity entries for investments where they have significant influence, typically through the equity method, not for all equity investments. For investments without significant influence, they may use the fair value method or cost method depending on the specific circumstances and applicable accounting standards.

Investors That Are Not Parent Entities Must Record All Equity