Any Excess of the Investor's Share of the Net Fair

question 48

True/False

Any excess of the investor's share of the net fair value of an associate's identifiable assets and liabilities over the cost of the investment is recognised as income in the determination of the investor's share of the associate's profit or loss in the period in which the investment is acquired.

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Definitions:

Primary Voltage

The voltage supplied to the primary winding of a transformer, which induces a secondary voltage in accordance with the transformer's winding ratio.

Flux Leakage

The number of magnetic flux lines that radiate into space and do not cut through the conductors of an inductor or secondary winding of a transformer.

Magnetizing Flux

The magnetic field generated in a material, or space, by the flow of electric current or by magnetization.

Flux Coupling

The process or degree to which magnetic lines of force pass from one component to another, such as in transformers.