If the investor is required to prepare consolidated financial statements,it recognises its investment in an associate by applying the equity method of accounting in its consolidated financial statements,and by applying the amortised cost method in its separate financial statements.

Question

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When an investor is required to prepare consolidated financial statements, it recognizes its investment in an associate by applying the equity method of accounting in its consolidated financial statements and by applying the amortized cost method in its separate financial statements. This is in line with the accounting standards and principles.

If the Investor Is Required to Prepare Consolidated Financial Statements,it