Where an investor has significant influence over an associate, the method of accounting used to account for such interests is referred to as the partial consolidation method.

Question

Quizplus · Accepted Answer

The method used is referred to as the equity method, not partial consolidation. Under the equity method, the investment is initially recorded at cost and subsequently adjusted for the investor's share of the associate's profits or losses.

Where an Investor Has Significant Influence Over an Associate, the Method