Which of the Following Statements Is Correct,for an Investment from the Date

question 16

Multiple Choice

Which of the following statements is correct,for an investment from the date on which it becomes an associate?

• A)fair values are compared with the cost of the investment,thus any change in the carrying amount of the investment since the date of purchase should be reversed
• B)fair values must be determined at the date on which significant influence is obtained
• C)AASB 128 states that an investment in an associate is accounted for using the equity method from the date on which it becomes an associate
• D)all of the above

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Definitions:

Mortality

The state or condition of being subject to death; often used to refer to the death rate in a population.

Psychological Well-being

A state of comfort, health, or happiness in an individual's psychological functioning.

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often considered a sign of emotional intelligence and self-control.

Belongingness Needs

are psychological needs for interpersonal connections, love, affection, and being part of a group, considered essential for human well-being.