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the following long-term equity investments shall be measured by employing the cost method .

1) a long-term equity investment of an investing enterprise that is able to control the invested enterprise .

2) a long-term equtiy investment of the investing enterprise that does not do joint control or does not have significant influences on the invested entity , and has no offer in the active market and its fair value cannot be reliably measured .

the price of a long-term equity investment measured by employing the cost method shall be included at its initial investment cost . if there are additional investments or disinvestments , the cost of the long-term equtiy investment shall be adjusted . the dividents or profits declared to distribute by the invested entity shall be recognized as the current investment income .

subsequnet measurement

cost method

offer / quotation

joint control

current executable warrant

disinvestments

12年前

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