Asked by Diana Richardson on Apr 30, 2024
Verified
If an investor owns between 20% and 50% of an investee's common stock it is presumed that the investor has significant influence on the investee.
Significant Influence
The power to participate in the financial and operating policy decisions of an investee but not control those policies.
- Gain an insight into the underlying principles and methodologies for logging equity and debt investments.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
True
Explanation :
According to accounting standards, ownership of 20% to 50% of an investee's common stock is considered to be significant influence, which means the investor has the ability to participate in the investee's financial and operating policy decisions.
Learning Objectives
- Gain an insight into the underlying principles and methodologies for logging equity and debt investments.
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