Significant Influence Investments F19-13b

Compare and contrast US GAAP and IFRS. How long should the equity method be applied for?

  1. Under U.S. GAAP, apply the the equity method until the investment is sold.
  2. Under IFRS, if the investment is to be sold, then adjusted to the lower of either the fair value or carrying amount, and reclassified as held for sale.