For the purposes of equity accounting for an investment in an associate,it is presumed that the investor has significant influence over the other entity where the investor holds:

Question

Quizplus · Accepted Answer

According to the International Accounting Standards (IAS) 28, an investor is assumed to have significant influence over the investee if it holds between 20% or more of the voting power of the investee. This means that the investor can have an influence on the operating and financial policies of the investee, which is why equity accounting is required to show the investor's share of the investee's profit or loss. Therefore, choice C is the best option.

For the Purposes of Equity Accounting for an Investment in an Associate,it