For WizardKim-PP
When to use the Fair-value Method
The Fair-value method is used when:
An Investor owns a fraction of investee’s available stock (Hoyle et al., 2017)
The investor has no significant affect on decision making
The fair-value is readily available (Hoyle et al., 2017)
Should my company use the Equity Method?
Ernst Young provides an easy to follow flow chart to see if a company should use the equity method or not.
(Equity method investments and joint ventures,2020)