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Chapter 5 — Subsequent Measurement

5.8 Interest Costs

5.8 Interest Costs

Investors may incur interest expense as a result of loans from third parties to finance the funding of their investments in equity method investees. In addition, equity method investees may incur interest expense as a result of loans from equity method investors or other third parties. The accounting for interest incurred by the investors and the investees principally depends on the use of the funds and the activities of the investees.