The basic premise under the equity method is that the investor is entitled to a share of the post-acquisition movements in the net assets of the associate.

Name: The basic premise under the equity method is that the investor is entitled to a share of the post-acquisition movements in the net assets of the associate.
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Question

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This is a correct statement about the equity method. The equity method allows an investor to recognize its share of the net assets and post-acquisition profits or losses of its associate.

The Basic Premise Under the Equity Method Is That the Investor