Where which of the following conditions exist, is the equity method not applied to associates? I. The entity is a wholly owned subsidiary or a partly owned subsidiary and its owners do not object to the entity not applying the equity method.
II) The entity's debt or equity securities are not traded in a public market.
III) The entity has not filed financial statements with a regulatory organisation for the purpose of issuing any class of securities in a public market.
IV) The ultimate parent of the entity publishes consolidated financial statements that comply with IFRS.
A) I and IV only
B) II and III only
C) I, II and III only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

All four conditions are exceptions where the equity method is not required for associates, as per IFRS guidelines.

Where Which of the Following Conditions Exist, Is the Equity