Asked by
William Krogsdale
on Nov 14, 2024Verified
Dividends received on investments are accounted for in the same way under the fair value through profit or loss model cost and the equity method.
Equity Method
An accounting technique used by a company to record its investment in another company when it has significant influence over that company but not full control or ownership.
Dividends
Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.
- Understand the differences in accounting for dividends received under different investment models.
Verified Answer
KQ
Learning Objectives
- Understand the differences in accounting for dividends received under different investment models.