Answer:
Step-by-step explanation:
The carrying value of the investment will fluctuate as the equity of the subsidiary changes if the parent utilizes the equity method to record the investment in a subsidiary on its books.
A parent may carry an investment in a subsidiary that it will consolidate using the cost method, the equity method, or any other method listed on its books.
The subsidiary accounting equity technique
The revenue from a parent company's subsidiary firm (or subsidiaries) is recorded using the equity method and is reported on the parent company's non-consolidated financial statements. The investment of the parent firm is first reported at cost.
Cost, equity, and consolidation are the three accounting procedures that might be used in this circumstance.