Which of the following statements regarding the equity method is correct?
A) to avoid double counting,dividends received from an associate are deducted from the carrying amount of the investment account.
B) the investor records a journal entry to adjust the carrying amount of the asset "investment in associate" and record "share of profit or loss of associate" as income for the period
C) the share of the investee's net assets taken up by an investor is its percentage ownership interest in the associate
D) all of the above
Correct Answer:
Verified
Q2: A sale or other transaction from an
Q3: Impairment occurs when:
A)the carrying amount of an
Q4: In each financial year that the equity
Q5: Define significant influence and identify the factors
Q6: Which method of accounting initially recognises the
Q7: Which of the following statements is correct,for
Q8: A method of accounting for investments in
Q9: Identify the adjustments required in applying the
Q10: The major limitation of the cost method
Q11: An entity over which the investor has
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