A company that controls other companies may not use the cost method (cost or fair value under AASB 139) to account for associates in its own separate statements.

Question

Quizplus · Accepted Answer

A company can use the cost method to account for investments in associates in its own separate financial statements, as per AASB 139 (or its international counterpart, IAS 27 Separate Financial Statements), which allows an entity to account for investments in associates at cost in its separate financial statements.

A Company That Controls Other Companies May Not Use the Cost