Financial and Managerial Accounting
Financial and Managerial Accounting
7th Edition
ISBN: 9781259726705
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter C, Problem 4DQ
To determine

Influential Investments in Securities:

The influential investment in securities has two integral parts. One is securities with significant influence and the other with controlling influence. The securities with significant influence give an opportunity to the investor to hold 20% or more but less than 50% of voting power. Whereas, when investors have 50% or more voting power then he is said to have controlling influence in the investments.

Non-Influential Investments in Securities:

The non-influential investments in securities is where the investor does not possess any kind voting power so as to influence the investee in any manner, they are solely related to investments and their periodic returns thereof.

To identify: Types of influential and non-influential investments.

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