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kars82
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| Posted: 03 Jul 2009 at 12:52 | IP Logged
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In case X buys an investment bought in a Company Y and uses cost method or equity method for internal reporting, then do we have to mark to market them at the end of the year?
Eg: X buys 1000 (30% ) shares of Y at $10 on 1st jan o1
On 31st Dec 01, market price of Y is $20. Do we consider this??
Quick reply will be highly appreciated..!!
Thanx in advance
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kj_nyc
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| Posted: 03 Jul 2009 at 12:57 | IP Logged
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No, unless X elected fair value under SFAS 159. And the CPA exam problem will tell you whether the company elected the SFAS 159 fair value option or not.
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kars82
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| Posted: 03 Jul 2009 at 12:58 | IP Logged
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hey thanx..!! that was real quick..!!!
__________________
Becker Review
FAR-85
AUD-82
REG-10/03- waiting and praying
BEC-11/06
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Topic: quick question - Mark to market investmen
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