Home Accounting What are some of the complexities in determining control of an investment?
Accounting

What are some of the complexities in determining control of an investment?

1. One of the determining factors regarding whether the equity method or consolidation should be used is the concept of control. How does “control” determine which method should be used? What are some of the complexities in determining control of an investment?
2. How are the equity, initial value, and partial equity methods of consolidation similar and different from one another? What issues should a company consider when choosing one method over another?

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