GAAP regarding fair value accounting for investments in equity securities will generally apply to an investment when the percentage of ownership of another company is less than 20%
Step-by-step explanation:
GAAP represents a mix of normal powers (laid down by strategy committees) and generally accepted methods of footage and investigating accounting data. The objective of GAAP is to make economic information communications clare, coherent and comparable.
GAAP acknowledges that you are likely to have "strong influence" for your enterprise that your firm maintains between 20 and 50% of the assets and may involve that you disclose the expenditure in your overall financial assertions underneath the regulations of the investment procedure.