Under which standards is it appropriate to record losses in excess of the investor's interest in an associate company because the associate is imminently expected to return to profitability?

Question

Quizplus · Accepted Answer

According to both US GAAP and ASPE, losses in excess of the investor's interest in an associate company can be recorded if the associate is imminently expected to return to profitability. However, under IFRS, losses cannot be recorded beyond the investor's interest in the associate company, even if the associate is expected to return to profitability.

Under Which Standards Is It Appropriate to Record Losses in Excess