Discuss qualitative considerations

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MarsX Inc's. CEO. Mrs. Smith, is considering making an equity investment in Water co. She has heard that, based on the ownership % that MarsX purchases of Water Co, The investment will be treated differently for financial reporting purposes on the books of marks. (5% investment, 35% investment , 65% investment). Mrs. Smith has come to you , Marx's controller, for help

1. Based on information above, Mrs. Smith wants to know the difference between the percentage ownership (that MarsX will purchase of water co) and treatment for financial reporting purpose

2. Bease on information above Mrs. Smith has heard that there are also qualitative consideration not just % ownership that determine treatment of financial reporting purposes. Identify and discus 3 qualitative considerations

Reference no: EM132740335

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