Unless there is evidence to the contrary,an investor owning 35 percent of the stock of an investee is assumed to have significant influence.

Question

Quizplus · Accepted Answer

According to accounting standards, owning 20-50% of the voting stock of an investee is presumed to give an investor significant influence. Therefore, owning 35% of the stock is within this range and the investor would be assumed to have significant influence, unless there is evidence to the contrary.

Unless There Is Evidence to the Contrary,an Investor Owning 35