The Standards Relating to the Treatment of Interest and Dividend

question 69

Multiple Choice

The standards relating to the treatment of interest and dividend income differ under ASPE and IFRS. Which of the following statements is INCORRECT?

• A) IFRS requires the use of the effective-interest method when interest income is to be reported separately.
• B) IFRS requires certain dividends to be recognized in other comprehensive income.
• C) ASPE allows the use of either the straight-line or effective-interest method.
• D) When using the equity method, IFRS allows a dividend from an investee to be recorded as income, while ASPE does not.

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Definitions:

(a) Proximity

The physical closeness or distance between objects or individuals, impacting interactions and perceptions.

False Alarms

In signal detection theory, instances when a non-present signal is mistakenly detected or reported as present.

Correct Reports

Accurate accounts or narrations of events or data, which have been verified for truthfulness and accuracy.

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the presence of a high concentration of cones.