If an associate uses accounting policies other than those of the investor for like transactions and events in similar circumstances,adjustments shall be made to conform the investor's accounting policies to those of the associate's financial statements before applying the equity method.

Question

Quizplus · Accepted Answer

Adjustments should be made to conform the associate's financial statements to the investor's accounting policies, not the other way around, before applying the equity method.

If an Associate Uses Accounting Policies Other Than Those of the Investor