How to distinguish the Financial Assets

CFA Level II FRA
#1

Hi, in the questions number 3~7 of #19-Intercorporate Investments in scheweser, it seems doesnt give any information how we can treat them (like holding of equity, influence etc). However the answer assumes equity method. Why is it so and how can I distinguish Equity method should be applied for this case?

Thanks

#2

The parent company “acquired” shares. So using equity method for “Parent” company’s report.

#3

thank you FranCFA. so just in case, how about for trading? they would say “bought” shares or something?

#4

Hmmm…yes, it’s pretty vague… I think exam will give more specific details.

#5

I hope so. Anyway I’m clear for my original point. Thank you!