Determine the appropriate method for investments

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Question - Marzi AG had the following investments in shares of other companies on December 31, Year 1:

COMPANY STATUS % VOTING RIGHTS COMMENTS

Elena Domestic 100% Operations differ from those of Marzi AG and other subsidiaries

Barbara Domestic 45% No other shareholder owns more than 0.1% of the voting rights

Arina Foreign 30% Arina has incurred a net operating loss three years in a row

Sophia Domestic 100% Sophia is under jurisdiction of bankruptcy court

Kristen Domestic 100% Operations are immaterial to those of Marzi AG

Layla Domestic 40% Management control contract provides Marzi AG with effective control

Sara Domestic 90% Marzi AG intends to sell one-half of its investment in Sara but not yet actively seeking a buyer

Sahar Foreign 50% Sahar is jointly owned with another company

Sepeed Foreign 15% No other shareholder owns more than 10% of the voting shares

Shaghi Foreign 70% Marzi AG can no longer bring home its dividends due to the host government passed a ban on repatriation of dividends

Elizabeth Domestic 51% Remaining 49% is owned by another company.

Determine the appropriate method for including each of these investments in Marzi AG's consolidate financial statements in accordance with: IFRS U.S. GAAP.

Reference no: EM132008248

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