How is the use of the equity method subject

Reference no: EM133484688

Question 1: How is the use of the equity method subject to manipulation? How might a financial statement reader detect such behavior? In addition, provide an example to prove how the equity method may result in manipulation of the financial results.

Question 2: Participate in follow-up discussion by providing recommendations to classmates' fact patterns on how a company could implement procedures to prevent manipulation of the use of the equity method.

Reference no: EM133484688

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