How is the use of the equity method subject to manipulation


Discussion Post: Equity Method

How is the use of the equity method subject to manipulation? How might a financial statement reader detect such behavior? In addition, provide an example to prove how the equity method may result in manipulation of the financial results.

Participate in follow-up discussion by providing recommendations to classmates' fact patterns on how a company could implement procedures to prevent manipulation of the use of the equity method.

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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Accounting Basics: How is the use of the equity method subject to manipulation
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