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AASB 128 Requires That Where an Investor Company Does Significantly

Question 26

Multiple Choice

AASB 128 requires that where an investor company does significantly influence an investee:


A) The investee company must revalue its assets to fair value and disclose all related party transactions.
B) The investor company must mark the shares to market.
C) The investee company must provide the investor company with details regarding profits made on inter-company transactions so that they may be eliminated from the group accounts.
D) The investor company must adopt the equity method of accounting for the investment.
E) None of the given answers.

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