CAF-6 · Chapter 10 · Question 3 of 15
Which accounting method is used to account for investments in associates in consolidated financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Equity Method
Explanation
IAS 28 requires the use of the equity method for investments in associates (and joint ventures).
More Associates (IAS 28) MCQs
- Q5When the associate pays a 'Dividend' to the investor, how is it recorded under the Equity Method?
- Q6Which of the following is NOT an indicator of Significant Influence?
- Q7In the Consolidated Statement of Profit or Loss, the investor's share of the associate's profit is shown as:
- Q8If an investor's share of 'Losses' of an associate equals or exceeds its interest in the associate, the investor:
- Q9If an investor sells goods to its associate (downstream transaction) and some goods remain in the associate's inventory, the unrealized…