2 concepts
Types of Investments: Dependence on Ownership Share
Types of investments include: 20% to 50% (as an asset), greater than 50% (as a subsidiary), and less than 20% (as an investment position).
Accounting Methodologies: Amortized Cost, Fair Value, and Equity
Due to different durations of holding and other factors, companies use several accounting methodologies, including amortized cost, fair value, and equity.