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All the following would require the use of the equity method for investments except:

A) material intra-entity transactions.
B) investor participation in the policy-making process of the investee.
C) valuation at fair value.
D) technological dependency.
E) significant control.

User Hodrobond
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Answer:

The following would require the use of the equity method for investments except is (C) valuation at fair value.

Step-by-step explanation:

The equity method for investments is typically applied when an investor has significant influence but not control over an investee. While material intra-entity transactions, investor participation in policy-making, technological dependency, and significant control are factors that may warrant the use of the equity method, valuation at fair value would usually lead to a different accounting method, such as fair value through profit or loss.

Material intra-entity transactions, investor participation in policy-making, technological dependency, and significant control are indicators that an investor has significant influence over an investee, justifying the application of the equity method. However, valuation at fair value might suggest a different approach in accounting for the investment, as fair value considerations may lead to using alternative accounting methods.

Option C is correct.

User Ji Cha
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