[Anonymous]

Title says it all.

[Biff-1955-Tannen]

Disclaimer: This is how I was taught in my Intermediate II class, so may be different for CPA questions.
I would assume between 20-50%, but I was taught that it would specifically need to state that they have “significant influence” and not to assume otherwise if it did not state that.

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Sand Wraith]

It depends on the situation, sometimes you might consolidate even if you don't own anything of a company this means that you're the sole customer of it and if you don't buy their goods then they'll shutdown! Usually it's like this:

00%-20% = Cost Method
20%-50% = Equity Method
50%+ = Consolidate

But as @Biff-1955-Tannen said you need to look for the term significant influence cause it might change how you treat an investment regardless of the percentage of ownership.

Edit: From my experience in the exam they'd tell you what method to use at least that what happened for me.

AUD ... Passed
REG ... Passed
FAR ... Passed
BEC ... Passed

I'm Done!!

[Author]

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