When Reporting Under the Accounting Standards for Private Enterprises (ASPE)

question 15

Multiple Choice

When reporting under the Accounting Standards for Private Enterprises (ASPE) which method must be used to report investments where the investor has significant influence over the investee?

• A) It must use the cost method to report all such investments.
• B) It must use the equity method to report all such investments.
• C) It may use the cost method, equity method, or at fair value but must account for all such investments by the same method.
• D) It may use the cost method for some such investments and the equity method for other such investments.