When one company buys securities (stock or bonds) issued by another company, the accounting treatment for those investments depends on the amount of influence/control that the investing company has over the issuing company.  When the investor has no influence (generally assumed when the investment represents less than 20% ownership), then the investment is treated as […]

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A lease is a contract that lets one party use an asset owned by another party, in exchange for periodic payments. The owner of the asset is the lessor; the user of the asset is the lessee. For the purposes of financial reporting, leases are divided into two categories, based on the economic substance of […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level I Membership, CFA® Level I Financial Reporting and Analysis (FRA) Membership, CFA® Level II Membership, CFA® Level II Financial Reporting and Analysis (FRA) Membership

This will give you access to this and all other articles at that membership level.