Where an acquisition in an associate results in an excess, how is the excess accounted for in the year of acquisition?
A) CR Investment in associate account.
B) CR Share of associate profit account.
C) DR Share of associates retained earnings account.
D) No adjustment is required due to the single line method of accounting followed under the equity method.
Correct Answer:
Verified
Q9: Robert Limited acquired a 25% interest in
Q10: David Limited acquired a 20% share in
Q11: Adjustments made for the purpose of calculating
Q12: For the purposes of equity accounting, significant
Q13: Carnation Ltd purchased a 25% shareholding in
Q15: Where an investor sells inventories to an
Q16: On 1 July 2021 Barry Ltd
Q17: Which of the following statements is correct?
A)
Q18: The following are regarded as factors
Q19: Carnation Ltd purchased a 25% shareholding in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents