ABC Inc. holds an investment in a publicly traded stock that is subject to significant influence and chooses not to use the equity method. Under ASPE how would the investment be measured?

ABC Inc. holds an investment in a publicly traded stock that is subject to significant influence and chooses not to use the equity method. Under ASPE how would the investment be measured?

It would be measured at its quoted value.  As per HB Section 3051, when an investee’s equity securities are quoted in an active market, and the equity method is not used, the investment is valued at the quoted amount with changes in value from period to period recorded in net income.

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