Assignment Question 7c,d

.docx
7c) Rogers uses the equity method to account for investments in associates and joint venture arrangements. An entity is classified as an 'associate' when Rogers holds more than 20% voting power, having significant influence over the entity's financial and operating policies but not controlling them. Where as in joint venture agreements, control is jointly shared between the involved parties, and the involved parties must unanimously agree for strategic financial and operating decisions. 7d) Rogers used the fair-value method to report investments in publicly traded companies. Investment in publically traded companies in which they have no control or significant influence are classified as "available for sale" and are based on publicly quoted prices. Rogers recorded realized gains at $3 million, while unrealized gains were $325 million. This information is reported in note 17 of the financial statements which deals with the reporting procedures of investments.
Uploaded by johnny75342 on coursehero.com