Accounting
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Boundless Accounting
Valuation and Reporting of Investments in Other Corporations
Accounting Textbooks Boundless Accounting Valuation and Reporting of Investments in Other Corporations
Accounting Textbooks Boundless Accounting
Accounting Textbooks
Accounting

Section 4

Holding Less than 20% of Shares

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By Boundless
Boundless Accounting
Accounting
by Boundless
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Fair Value Method

The ownership of less than 20% creates an investment position carried at fair market value in the investor's balance sheet.

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Calculating Fair Value

Calculating fair value involves considering objective factors including acquisition, supply vs. demand, actual utility, and perceived value.

Reporting Fair Value

Stock investments of 20% or less are recorded at cost (considered its fair value) and reported as an asset on the balance sheet.

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