Xem mẫu
Appendix E
Reporting and Interpreting Investments in other corporations
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA
McGrawHill/Irwin Copyright © 2014 by The McGrawHill Companies, Inc. All rights reserved.
Passive Investments in Debt and Equity Securities
Passive investments are made to earn a high rate of return on funds that may be needed for future purposes.
Investments in debt securities are always considered passive investments.
Equity security investments are presumed passive if the investing company owns less than 20% of the outstanding voting shares.
The investor is not interested in controlling or influencing the other company.
E-2
Investments in Stock for Significant Influence
Investments made with the intent of exerting significant influence over another corporation.
The ability of the investing company to have an important impact on the operating and financial policies of another company.
Significant Influence
20% - 50% outstanding shares
E-3
Investments in Stock for Control
Investments made with the intent to exert control over another corporation.
The investing company has the ability to determine the operating and financial policies of another corporation.
Control
>50% outstanding shares
E-4
Types of Investments andAccounting Methods
The accounting method depends on the type of security and the level
of ownership (influence).
E-5
...
- tailieumienphi.vn
nguon tai.lieu . vn