• Sometimes an investor’s level of influence changes, making it necessary to change from the equity method to another. How should the investor account for this change in accounting method?
• Is it necessary for an investor to report individual amounts for the three categories of investments in the financial statements? What information should be disclosed about each of these investments (if required).
• Do U.S. GAAP and IFRS differ in the amount of flexibility that companies have in electing the fair value option? Explain.
• How does IFRS differ from U.S. GAAP with respect to using the equity method?