1. Opinion 18 prescribes the accounting for investments in the common stock of corporations that are not consolidated. Opinion 18 specifies that investments that allow the investor to exercise significant influence over the operating and financial policies of an investee should be accounted for using the equity method. Further, Opinion 18 establishes a presumption of significant influence for investments that represent 20 percent or more of the investee’s outstanding voting stock. 2. Interpretation 2 indicates that while Opinion 18 does not apply to partnerships, “many of the provisions of the Opinion would be appropriate in accounting ” for partnerships. Although no authoritative accounting literature broadly addresses the accounting for limited partnerships, SOP 78-9 addresses the accounting for real estate Copyright © 2010, Financial Accounting Standards Board Not for redistribution Page 1partnerships, and that accounting is applied by analogy to partnerships that are not real estate ventures. SOP 78-9 requires noncontrolling investments in limited partnerships (LPs) to be accounted for using the equity method as described in Opinion 18 unless th
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