CAF-6 · Chapter 10 · Question 7 of 15
In the Consolidated Statement of Profit or Loss, the investor's share of the associate's profit is shown as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A single line item: 'Share of profit of associate'.
Explanation
The investor's share of the profit or loss of the investee is recognized in the investor's profit or loss as a separate line item.
More Associates (IAS 28) MCQs
- 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:
- Q12Which of the following is NOT required for the application of the equity method?
- Q13If an investment in an associate becomes a subsidiary (investor obtains control), the equity method is: