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:

Conscience

A component of the superego that contains behaviors for which the child has been punished.

Primary-process Thought

A Freudian concept involving primitive, instinctual thought patterns that are illogical and driven by the unconscious mind.

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Sexual Longings

Intense desires or yearnings for sexual intimacy and connection.