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Normally when a company changes from equuity method to the fair value method of accounting, most probably it is done when the owner ship interest gets 20
Normally when a company changes from equity method to the fair value method of accounting, most probably it is done when the owner ship interest gets 20% or lower.
The ownership of less than 20% creates an investment position carried at fair market value in the investor's balance sheet. Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.
It is only this circumstance that usually leads to change from equity method of accounting investments to fair value method.
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