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AG_CPA
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| Posted: 10 Nov 2009 at 04:25 | IP Logged
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Most questions I have seen or studied suggests starting
with cost and then going to equity methods (e.g. 10% to 30%
etc.,). Has anyone seen the other way around when you sell
part of that investment during the year reducing Investor's
holdings to less than 20%? Where if there is dividend
income how is it treated in midstream? what are the big
rules to know?
Appreciate any inputs
Thanks
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BEC :Passed 5/24/09
REG :Passed 8/28/09 (R)
AUD :Passed 8/24/09
FAR :Passed 11/25/09
Prof Ethics 98% 01/14/10
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lovethepirk
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| Posted: 11 Nov 2009 at 00:24 | IP Logged
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not to go off topic here, but did you study for REG and AUD at same time? I see you took them both near each other. Looks like it might have been a retake for you (R)?
Regardless, how was it taking them so fast together?
thanks
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Using Wiley books and CPAnet!!!
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AG_CPA
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| Posted: 11 Nov 2009 at 02:00 | IP Logged
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I took BEC & REG 2 days apart in May last week, I passed
BEC but couldn't clear REG. I couldn't revise all that I
studied in 2 days between the exams. In Aug last week, I
studied AUD fully then focussed only about 3 weeks on
revising the REG. Also, I made sure to give 3 days
breathing time to revise Tax part well. I must say I was
bit lucky to scape through REG with 77 in last window.
Hope it makes sense...
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BEC :Passed 5/24/09
REG :Passed 8/28/09 (R)
AUD :Passed 8/24/09
FAR :Passed 11/25/09
Prof Ethics 98% 01/14/10
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AG_CPA
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| Posted: 11 Nov 2009 at 02:04 | IP Logged
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Btw, I found the answer to the question I posted above,
it's in becker's F3(B) update page 6 referencing APB 18
para 19.
If the investor sells part of the holding to fall below 20%
threshold, investor just stops using the equity method and
starts using the cost method (sounds like prospective
approach).
Thanks
__________________
BEC :Passed 5/24/09
REG :Passed 8/28/09 (R)
AUD :Passed 8/24/09
FAR :Passed 11/25/09
Prof Ethics 98% 01/14/10
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Topic: Equity to Cost
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