Question

Under fair value option, which of the following affects the income the investor recognizes from its ownership in the investee

A. The investees reported income adjusted for excess cost over book value amortization

B. Changes in the fair value of the investors ownership shares of the investee

C. Intra-equity profits from upstream sales

D. Extraordinary items reported by the investee

Answer 1

B. Changes in the fair value of the investors ownership shares of the investee

Explanation:

The fair value option is defined as the alternative for any business that helps them to record its financial instruments at their fair values.

The answer is : Changes in the fair-value of the investor's ownership in shares of the investee.