If an associate or joint venture uses accounting policies other than those of the entity for like transactions and events in similar circumstances, adjustments shall be made to conform the _______________ accounting policies to those of the ______________ when the associate or joint venture's financial statements are used by the entity in applying the equity method.

Question

Quizplus · Accepted Answer

The adjustment should be made to conform the associate or joint venture's accounting policies to those of the entity because it is the entity that is using the associate or joint venture's financial statements for applying the equity method. Therefore, the correct answer is A as it mentions the associate or joint venture's accounting policies and the entity's accounting policies.

If an Associate or Joint Venture Uses Accounting Policies Other