Where an inter-corporate investment is carried at acquisition cost plus or minus the investor's share of post-acquisition profits or losses of the investee,and asset revaluations by the investee are ignored,the method of equity accounting that is being applied is the:

Question

Quizplus · Accepted Answer

The cost-based equity method involves carrying the investment at acquisition cost adjusted for the investor's share of post-acquisition profits or losses, while ignoring asset revaluations by the investee.

Where an Inter-Corporate Investment Is Carried at Acquisition Cost Plus