CFA® Level II FSA - Equity Method of Accounting (Investments in Associates)

[@rishisharma565]

Thanks for the detailed explanation of the topic. I was asked this question recently in an interview i could not answer it properly.

[@PrepNuggets]

Excellent!

[@tanmaychandra9434]

Man! this was some high quality shit.

[@kaustubh_shetye]

Nice explanation 👍 Would love to see some more videos on KZbin 😅

[@daredevil_491]

pese dede gareeb

[@kenny641]

I have a quick question. Is the return on capital (that represent dividend received from the investment, ie. the $60 in the example at 5:18) recorded as an asset on the balance sheet? Or is it recorded as an earning on the income statement?

[@sheriffdeenadebakin3183]

$60 is a deduction (credit) to the investment in associate account and debit to either cash or dividend receivable account in the book of the investor.

[@janhavi.v1320]

perfectly helpful

[@PrepNuggets]

Glad to hear that!

[@hamidalum]

excellent#

[@PrepNuggets]

Thank you! Cheers!