7 lines
456 B
Markdown
7 lines
456 B
Markdown
The rule to remember:
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- **Less than 20%** ownership → cost method (only record when cash is received as dividends)
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- **20% to 50%** ownership → equity method (record your share of profit/loss regardless of cash)
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- **Over 50%** ownership → full consolidation
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Also important: this $15,000 is a **non-cash item** — Trans-Canada reports it as income but hasn't actually received the cash. So when calculating cash-based ratios, you'd subtract it out. |