FSA: cost method or equity method

dose cost method refer to “trading, available-for-sale”? or not? if reclassify one equity investment from equity method to cost method, what is the effect on net income? Is it the same way calculation as trading or available-for-sale? Thanks.

hw0799 Wrote: ------------------------------------------------------- > dose cost method refer to “trading, > available-for-sale”? or not? Yes. > if reclassify one equity investment from equity > method to cost method, what is the effect on net > income? Is it the same way calculation as trading > or available-for-sale? Thanks. I woudn’t worry about it.

hw0799 Wrote: ------------------------------------------------------- > dose cost method refer to “trading, > available-for-sale”? or not? Passive investments use cost / market method. If it specifically says cost method then the security should be carried at cost. > if reclassify one equity investment from equity > method to cost method, what is the effect on net > income? Is it the same way calculation as trading > or available-for-sale? Thanks. effect on net income will be same as AFS / HTM

CFAI: mock 2, ACI case scenario Q17, how equity relate to the book value? the solution gives equity value increase/decrease, but I am confused how to put equity into book value. thanks. mwvt9 Wrote: ------------------------------------------------------- > hw0799 Wrote: > -------------------------------------------------- > ----- > > dose cost method refer to “trading, > > available-for-sale”? or not? > > Yes. > > > if reclassify one equity investment from equity > > method to cost method, what is the effect on > net > > income? Is it the same way calculation as > trading > > or available-for-sale? Thanks. > > I woudn’t worry about it.