Key difference(s) between the cost method and the equity method of accounting for investments include that under the equity methoD.
A) The investment is not initially recorded at cost in the investor's accounts.
B) Dividends from pre-acquisition profits are treated as revenue in the investor's accounts.
C) The investment is retained at cost in the consolidated accounts.
D) Changes in the fair value of the investment are recognised and deferred to an asset revaluation reserve.
E) None of the given answers.
Correct Answer:
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Q7: One reason for holding equity investments in
Q10: An associate is an investee over which
Q19: If an associate uses accounting policies other
Q21: Where an investor has significant influence over
Q22: Examples of bonds include:
A) Debentures.
B) Options.
C) Preference
Q24: An equity instrument is defined as:
A) An
Q25: AASB 128 specifically addresses the accounting for
Q26: AASB 128 requires that where an investor
Q27: Factors that should be considered in determining
Q28: Equity accounting is argued to provide:
A) A
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