a.
Introduction: The equity method of accounting is a method where the investment is recognized at cost initially and thereafter accounted for based on the change in the investor’s share in investee net assets. The share in the investee’s profit or loss is included in the investor's profit or loss. Fair value method initial investment is recorded at cost and then adjusted with fair value.
The amount F should report as its investment in S as on December 31, 2021.
b.
Introduction: The equity method of accounting is a method where the investment is recognized at cost initially and thereafter, accounted for based on the change in the investor’s share in investee net assets. The share in the investee’s profit or loss is included in the investor's profit or loss. Fair value method initial investment is recorded at cost and then adjusted with fair value.
The number of equity earnings from S, and F should report in the income statement on December 31, 2021.
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Chapter 1 Solutions
ADVANCED ACCOUNT LL/W CONNECT +PROCTORIO
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