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There are three ways to account for investments - four if you're being really picky.

1. A "subsidiary" is where it's parent company owns 50% or more (and has management control). A subsidiary is consolidated into the parent company's financial statements.

2. An "associate" is 20-50% owned, with the parent company not having management control. An associate is reported using equity accounting.

3. "Cost" accounting is typically used on investments where the parent owns less than 20%. The investment is reported at the lower of cost or market.

4. If an investment is held for sale or as inventory, the investment is reported at market.

2006-11-17 02:39:05 · answer #1 · answered by csanda 6 · 0 0

Government investment is just another liberal propaganda way of twisting the definition of what it really still means: government spending. "Investments do appreciate. You give a kid a Pell Grant, he goes to school, stays out of trouble, gets a good job and winds up paying back his Pell Grant and then some in taxes. The Government actually gains some revenue in the long run by investing in the future of that student" Or you dont give the kid a pell grant. He finds another way of paying for his college education that doesnt cost the taxpayers one thin dime: scholarships, charities, parents pay for it, college loans, or he works a job and pays for it himself. Voila. He STILL gets a good job, stays out of trouble, etc. If your way of thinking was any bit logical, considering all of the "investments" the government has made over the past hundred years, we should have so much money, that we shouldnt have a debt and deficit right now.

2016-05-21 22:29:03 · answer #2 · answered by Anonymous · 0 0

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