CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

The reporting of investment securities at market value is required for the following ownership percentage:
A. Less than 20% of the outstanding common stock.
B. Between 20% and 50% of the outstanding common stock.
C. More than 50% of the outstanding common stock.
Explanation: Investments of less than 20% of the outstanding common stock are accounted for under the market method. These include both available-for-sale and trading classifications. Ownership interests of between 20-50% are accounted for under the equity method. Ownership interests greater than 50% are consolidated.

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