CFA Practice Question

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CFA Practice Question

Under the equity method, the investment account is decreased by all of the following except the investor's proportionate share of
A. dividends paid by the investee.
B. declines in the fair value of the investment.
C. the losses of the investee.

User Contributed Comments 2

User Comment
danlan2 Under equity method, declines in the fair value of the investment is not reported. It is reported under cost-market method.
mike_ast Are investments not supposed to measured at fair value through net income using the Equity method?
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