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:

Restructuring Charges

Costs associated with reorganizing a company’s operations, such as layoffs, plant closures, or other major changes aimed at improving efficiency or effectiveness.

Stock Prices

The current trading price of a company's shares on the stock market.

Correction of an Error

An adjustment in financial statements to amend previously recognized inaccuracies or omissions.

Retroactively Restated

Financial statements that have been amended and reissued to correct errors or to reflect new accounting principles applied to past periods.