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Cornerstones of Financial Accounti...
Describe the fair value method of accounting for investments. Under which circumstances should it be used?
The fair valuet method of accounting for investments and the circumstances when it is used.
There are basically 3 methods of accounting for investments:
- Amortized Cost Method
- Fair value method
- Equity method
Fair Value method of Accounting:
is used for both debt and equity securities that are usually classified as either trading securities or available for sale securities(less than 20% common stock ownership)
Trading secu...
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