Advanced Accounting (Canada) · The Equity Method & Investments in Associates

An investor loses significant influence and must switch from the equity method to fair value while keeping some shares. How is the retained holding measured, and where does any difference go?

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More in The Equity Method & Investments in Associates

An investor holds 15% of an investee, but the rest is widely dispersed among passive shareholders and the investor controls voting proxies. Equity method or fair-value investment?

What must be disclosed about investments in associates under IFRS 12?

Under the equity method, an associate earns net income and later declares a dividend to the investor. How does each event hit the investor's books?

An associate earns a strong profit but declares no dividend this year. Under the equity method, what income does the investor report, and why?

An investor owns 30% of an investee, but another party holds a controlling interest and keeps the 30% holder off the board and out of policy-making. Equity method or not?

Which factors indicate that an investor has significant influence over an investee?

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