Internal investment pools,which account for investments of the reporting entity,are to be spread out to the funds providing the resources,when preparing financial statements.

Question

Quizplus · Accepted Answer

Internal investment pools represent investments made by the reporting entity using its own resources, and therefore, they should be allocated back to the funds that provided the resources. This is done to ensure that the financial statements show a true and fair view of the financial position, performance, and cash flows of the entity, taking into account all related transactions and balances. Failure to do so could result in incomplete or misleading financial statements, which could adversely affect the decisions of users.

Internal Investment Pools,which Account for Investments of the Reporting Entity,are