Investments in associates are

Question

Quizplus · Accepted Answer

Investments in associates are generally accounted for using the equity method. Under this method, the investment is initially recorded at historical cost when purchased (which may be adjusted for any goodwill or other difference between the cost of acquisition and the proportionate share of the fair value of the identifiable assets and liabilities of the associate at the date of acquisition), and subsequently adjusted for the investor's share of the associate's profits or losses and any dividends received. Therefore, option A is the best choice.

Investments in Associates Are