Under IFRS, both the investor and the investee should follow the same accounting practices, requiring adjustments be made to the investor's books in order to prepare financial information.

Question

Quizplus · Accepted Answer

Under IFRS, there is no requirement that both the investor and the investee follow the same accounting practices for the investor to use their financial information. The investor uses the financial information of the investee as it is, without needing to adjust it to mirror their own accounting practices.

Under IFRS, Both the Investor and the Investee Should Follow