1.4 Summarized Income Statement Information
To determine whether summarized income statement information is required under
Rule 10-01(b)(1), a registrant must apply
both the investment test and the income test to each equity method investee. The
test that results in the highest significance level is used to determine the
financial statement reporting requirements.
If, on the basis of the highest test result, the significance of an
individual equity method investee is greater than 20 percent, the registrant must
provide summarized income statement information in its quarterly report.