Identify the Appropriate Accounting Method for Each of the Following

question 96

Essay

Identify the appropriate accounting method for each of the following situations involving investments in common shares AND justify your choice:
a_Purchase 10% and plan to sell in three months' time
b_Purchase of more than 55% of investee's shares to control their long term strategy
c_Purchase of 33% interest to share ownership with two other companies in a risky endeavour in a developing country
d_Purchase of 40% interest in a company to significantly influence their product development

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Definitions:

Reported Attitude

An attitude expressed or communicated by an individual, which may or may not accurately mirror their actual beliefs or feelings.

Actual Behaviour

The observed actions or reactions of an individual in a given situation, as opposed to intended or theoretical behavior.

Theory of Reasoned Action

A psychological theory that explains an individual's behavior based on their intention to perform the behavior, which is influenced by their attitudes and subjective norms.

Predicting Behaviour

The process of forecasting individuals' future actions based on past and current behavior patterns, often used in psychology and marketing.