Final answer:
Securities held under significant influence refer to investments where the investor has significant control or influence over the investee's operations and financial policies. They are accounted for using the equity method and disclosed in the investor's financial statements.
Step-by-step explanation:
Securities held under significant influence refer to investments in other companies where the investor has the ability to exert significant control or influence over the company's operations and financial policies. This is usually achieved through ownership of 20-50% of the voting shares. The investor's purpose of holding such securities is often to gain strategic advantages or business synergies.
One important consideration when holding securities under significant influence is the accounting treatment. These investments are accounted for using the equity method, where the investor's share of the investee's profits and losses is recorded on the investor's income statement.
Another important aspect to know is that securities held under significant influence are disclosed in the investor's financial statements. This ensures transparency and provides relevant information to the users of those financial statements.