Intercorporate Investments

Level of Security Characteristics Reporting Balance Sheet Income Statement

Involvement Type Category

Little Amount Debt HTM Cost Method Amortized Interest received

(Passive < 20% Cost +/- Amortization
equity of
interest) Discount/Premium

Debt/Equity HFT, Market Fair Value Unrealized

Designated as Method gain/losses
Fair Value included in
earnings

Debt/Equity AFS Market Fair Value Unrealized

Method gain/losses
reported in equity

Significant Equity 20%-50% Equity Investment at Report Income

Influence Method Cost – Div +/- equal to
Proportionate proportionate
share of share of investee’s
investee’s profit
profit/loss

Joint Venture Equity Shared US GAAP: Proportionate consolidation:

Control Equity Include proportionate share of
Method assets, liabilities, revenue and
expense in investor’s financial
IFRS: Equity statements.
or
Proportionate
Consolidation

Control Equity >50% Consolidate Report Report income

Balance sheet statement of
of Subsidiary Subsidiary
together with together with
parent parent