Which statement is not correct about strategic investments?
A)Proportionate consolidation is used for joint ventures because of the presence of joint control.
B)Proportionate share of the investee's assets is included in the joint venturer's balance sheet.
C)Consolidation effectively results in two legal entities being reported as one economic unit.
D)The fair value through profit or loss method is used for strategic investments.

Question

Quizplus · Accepted Answer

The fair value through profit or loss method is not typically used for strategic investments. Instead, the equity method or consolidation method is usually employed.

Which Statement Is Not Correct About Strategic Investments