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Which statements regarding accounting for equity securities

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Problem 1: Which of the following statements regarding accounting for equity securities investments is not true?

option A. When the investor firm has no significant influence, fair market value adjustments for marketable equity securities are reported under other comprehensive income.

option B. When the investor firm has significant influence, the accounting treatment takes into consideration the fact that the investor can influence the business outcomes of the investee firm.

option C. When the investor firm has significant influence, dividends received from the investee firm reduces the balance in the investment account.

option D. When the investor firm has no significant influence, the accounting treatment for available for sale equity securities is the same as the accounting treatment for available for sale debt securities.

Reference no: EM132805875

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