🎥+✏️Accounting for investment🟢

Responses

1. 

   Khondaker Ahmed 24 October 2024

   – In this section we learned about why do companies invest
   – In order to report the investments, GAAP allows 4 methods: Fair value, cost, equity, and consolidation
   – Companies use fair value method when they are just looking to make extra cash on their idle funds via capital appreciation and dividend income
   – Companies use cost method when fair value isn’t available; GAAP allows 2 assessments, one for impairment, and other one for market value adjustment
   – Companies use equity method when they have significant influence over their subsidiary but doesn’t have complete control
   – Companies must use consolidation when they have full control, which can be achieved through owning all the voting stocks or by special contractual agreement

2. 

   Sarah Scott 4 April 2025

   I am reviewing this because I am finding that my textbook is poorly written.

   1. 

      Maroun, CPA 5 April 2025

      Hello Sarah,

      We’re glad the lectures are helping to fill the gaps your textbook left.
      Keep up the great work and happy studying!