HOMEWORK 8 Essay Example | Topics and Well Written Essays - 250 words - 1

HOMEWORK 8 - strain ExampleThe investor acquires a significant influence when he/she a stock of 20 & 50 lot of the total stock.The report indicates the investors equity in relation to that of the investee on the income statement after carrying come out all(a) the necessary adjustments on the investment balance before determining the dividends received. According to Organization for sparing Co-operation and Development, (2011) the equity recorded on the investees income is the investors share in the report income after carrying out the amortisation on the net investment. The report also indicates the losses incurred in the income.The investor also gain the control when the rights liberty chit an opportunity on the current ability that coordinates the applicable activities in the firm. The power of an investor is determined basing on the concepts of relevant activities and the existing rights in the firm. The investor gains the control through the voting rights and the other con tractual arrangements in the firm.In general, the investor acquires rise control when the existing rights provide current liability that directly affects the investees returns. In the assessment process, all the substantive rights are limit into consideration. Bartzokas & Mani states that the investor has total control on specific assets of the investee in the firm. The voting rights must not dominate the control of the stock as all the administrative tasks must be put into