Under the Cost Method of Accounting for Equity Investments the Investment

Under the cost method of accounting for equity investments the investment is initially recognised at its cost of acquisition anD.

A) Profits earned and dividends declared are treated as an adjustment to the amount invested.
B) Gains and losses on holding the shares are recognised at each reporting date.
C) Dividends declared from pre-acquisition profits are deducted from the carrying amount of the investment.
D) Revalued to net realisable value at the determination of the directors.
E) None of the given answers.