AASB 128 Requires That the Equity Method Be Discontinued When

question 13

Multiple Choice

AASB 128 requires that the equity method be discontinued when

• A)an investor ceases to have control over the investee
• B)an investee ceases to have significant influence over the investor
• C)an investee ceases to have control over the investor
• D)an investor ceases to have significant influence over the investee

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Definitions:

Transfer Ownership

The act of moving legal title and rights from one entity or person to another.

Capital Budgeting

Capital budgeting is the process by which companies evaluate and prioritize investments in long-term assets and projects based on potential returns and strategic goals.

Long-Term Investments

Investments held for an extended period, typically exceeding one year, intended for growth, income, or both.

Planning

The process of setting goals, establishing strategies, and outlining tasks and schedules to achieve these goals.