busterbluth

Usually you want to use equity method of accounting when you have >20% ownership AND can exert significant influence. I have seen points mentioned however that a company can have say 19.5% ownership and be deemed to have significant influence and thus must use the equity method of accounting.

I've never seen a question this way where you own 30% of a company and dont have significant influence. I think it would be practically impossible not to have significant influence over a publicly traded company if you have 30% of the shares...I would go equity method.

yospaghetti

You don't use the equity method if they don't have significant control, despite having >20% interest. There is an example somewhere that gives a scenario where the firm's shares are basically useless as they can never have any influence over decisions. No influence -> investment in securities.

ppls

I dont get the question