I understand the equity method where it is from, it is the n\adjustment of net income, but what does it mean when it ask whats the income in fair value method? where is this from
This is question 6 of Topic test FRA Eagle
I understand the equity method where it is from, it is the n\adjustment of net income, but what does it mean when it ask whats the income in fair value method? where is this from
This is question 6 of Topic test FRA Eagle
Equity method:
P/L of investor
net income of investee in % shares less dividends in % shares
Fair value method:
P/L of investor
Change in market value of shares in investee + collected dividends
got cha where is fair value method used
FVtPL is HFT method. It’s same and FVtPL is an IFRS 9 synonyms for HFT.