Accounting disposal of mutual transform between cost method and equity method in long-term equity investment
Xiangzhe Li · 2010
The accounting of long-term equity investment is not only an important point in business accounting but also one of the difficulties. Especially, with the action of reducing or adding investment, you have to change the way in accounting. In such process it will involves the change in fair value of the invested company's net assets and the retrospective adjustment methods for long-term equity investment, resulting unwieldy difficulties in switching accounting method.