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How is an equity investment that lacks significant influence adjusted to fair value at the end of each reporting period?

User McGrady
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Final answer:

An equity investment that lacks significant influence is adjusted to fair value at the end of each reporting period using the fair value method.

Step-by-step explanation:

An equity investment that lacks significant influence is adjusted to fair value at the end of each reporting period using the fair value method. This method involves valuing the investment based on its current market value rather than its historical cost. The adjustment is made on the balance sheet by increasing or decreasing the investment value in accordance with changes in the fair value.

User Arbnor
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