Which of the following statements is incorrect?
A) the equity method of accounting adjusts the carrying value of an investment in an associate to reflect post- acquisition changes in the investor's share of the net assets of the investee
B) accounting for investments at fair value through profit or loss recognises the change in fair value of the investment in income and remeasures the investment to fair value at balance date
C) the cost method of accounting adjusts the carrying value of an investment in an associate to reflect post- acquisition changes in the investor's share of the net assets of the investee
D) AASB 128 requires the application of the equity method of accounting to investments in associates in the consolidated financial statements of the investor
Correct Answer:
Verified
Q11: An entity over which the investor has
Q12: Goodwill arises when:
A)the cost of acquisition equals
Q13: Gairdner Ltd holds a 25% interest in
Q14: AASB 128 requires that the equity method
Q15: The factors listed in AASB 128 that
Q17: The disclosures required by AASB 128 include:
A)the
Q18: The power to participate in the financial
Q19: Which of the following statements is incorrect?
A)where
Q20: The equity journal entry on consolidation for
Q21: Explain the equity method and the major
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