Shares in Companies
Code: 1253
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Account Information
| Account Type | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Value of shares owned in other companies for investment purposes
International Accounting Standards
IFRS
IFRS 9 / IAS 28
Financial Instruments / Investments in Associates
Less than 20% interest: FVTPL. 20-50%: equity method under IAS 28. Over 50%: consolidation.
US GAAP
ASC 321 / ASC 323
Investments - Equity Securities / Equity Method
Similar thresholds. Less than 20%: FV through net income. 20-50%: equity method.