what are the three levels of influence that an
investor can have over an investee company?...
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what are the three levels of influence that aninvestor can have over an investee company? what is the appropriateaccounting treatment for each level of influence?
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Three levels of influence that an investor can have over an investee company 1Minority passiveFinally minority passive ownership exist when the investor holds less than 20 of the companys shares This gives the owner no significant influence over the company Investments in this company are accounted for using the cost method or the market method and may be classified as public or marketable securities 2Minority active Minority active ownership exists when the investor holds 2050 of the companys shares This gives the investor the ability to
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