Chapter 9
Investments
435
AS-13 (
1
)
On January 1, 2016, Meltam Company purchased 30% of the outstanding common shares of
another company at $65 per share. The investment has given Meltam significant influence.
At year-end, the price has gone up to $67.00 per share. How should the company record this
price adjustment?
AS-14 (
2
)
The fair value through profit and loss method can be used to record both debt investments
and equity investments. What kind of debt and equity investments can be recorded using this
method?
AS-15 (
3
)
Determine the level of influence that the investor has over the investee at 7%, 21% and 51%
of the ownership.
Percentage of Ownership
by Investor
Investor’s Level of Influence
on Investee
7%
21%
51%
