Adjustments Made for the Purpose of Calculating the Incremental Adjustment

question 1

Multiple Choice

Adjustments made for the purpose of calculating the incremental adjustment to the share of profit of an associate are:

• A) recognised in the books of the investor;
• B) recognised in the books of the investee;
• C) notional adjustments and not included in the books of the investee;
• D) relate to realised transactions and so are recognised directly by the investee.