Question

Analyze the effect of the equity investments and impairments resulting from the acquisitions and investments by Amazon.com on the financial statements, and indicate whether or not the strategy was a creatable one. Provide support for your rationale.

Answer 1

The equity investments and impairments of Amazon.com resulting from the acquisitions and investments on the financial statements improved the level of assets, earnings and goodwill from the non-controlling interests in the income statement. It recorded a high level of income from the non-controlling interests due to the equity investments. The strategy of equity investments was a creatable one because it incorporated pick up on existing value premiums, impedance charges recorded by living social was incorporated, other working income and misfortunes were incorporated and the weakening additions were also included prompting to net of value of assessment strategy venture action.

Rationale: Equity investments approach was implementable in the domestic as well as global markets. For instance, Amazon.com had invested its equity in various companies in India to dilute the influence of its rivals in the markets. The strategy of equity investments made it possible for Amazon.com to retain ownership without being involved in the company's operations.