CAF-6 · Chapter 10 · Question 11 of 15
The 'Carrying Amount' of an associate at the reporting date is calculated as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Cost + Share of post-acquisition profit - Dividends received - Impairment (if any).
Explanation
This is the standard formula for the equity method carrying amount.
More Associates (IAS 28) MCQs
- Q13If an investment in an associate becomes a subsidiary (investor obtains control), the equity method is:
- Q14How is 'Goodwill' related to an associate handled in the financial statements?
- Q15The entire carrying amount of an investment in an associate is tested for 'Impairment' as a single asset if:
- Q1An 'Associate' is an entity over which the investor has:
- Q2Significant influence is generally presumed to exist if the investor holds, directly or indirectly, what percentage of the voting power of…