CAF-6 · Chapter 10 · Question 5 of 15
When the associate pays a 'Dividend' to the investor, how is it recorded under the Equity Method?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Deducted from the carrying amount of the investment.
Explanation
Distributions (dividends) received from an investee reduce the carrying amount of the investment.
More Associates (IAS 28) MCQs
- 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…
- Q10In the Statement of Financial Position, an investment in an associate is classified as a:
- Q11The 'Carrying Amount' of an associate at the reporting date is calculated as: