If an Investment in an Associate Entity Were to Be

question 26

Multiple Choice

If an investment in an associate entity were to be accounted for using the cost method,the investment is initially recognised at its cost of acquisition and:

• A) all dividends declared in the post-acquisition period are treated as a recovery of the investment.
• B) if the shares in the associate are traded in an active market, market value increments or decrements are recognised as gains or losses at each reporting date.
• C) dividends declared from pre-acquisition profits are deducted from the carrying amount of the investment, even if these dividends are declared subsequent to acquisition.
• D) none of the above.

Comprehend the concept and application of program evaluation and review technique (PERT), including critical path analysis.

Identify and explain the concepts of positive reinforcement and the exception principle in organizational control and performance management.

Understand the concept of controlling in management, including types and purposes.

Identify and describe various control tools and techniques used in organizations.

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Definitions:

Entitativity

The perception or quality of being a distinct and unified group, characterized by similarities, shared goals, or common fate among its members.

Cohesiveness

Refers to the strength of the bonds among members of a group, which often helps in enhancing group performance and satisfaction.

Emergent

Describes phenomena or patterns that arise or develop in complex systems, often unexpectedly and without a singular entity controlling them.

Circumstantial

Depending on specific conditions or circumstances rather than being absolute or inherent; context-dependent.