Where an Investor Has Discontinued the Use of the Equity

question 29

Multiple Choice

Where an investor has discontinued the use of the equity method because the associate has incurred losses, it must disclose the:

• A) unrecognised share of current period and cumulative losses of the associate.
• B) reason why it has discontinued the method.
• C) accounting policy it has adopted in place of the equity method.
• D) effect on the statement of changes in equity if it had continued to use the method.

Determine the cost of goods manufactured.

Understand the components and structure of the manufacturing statement.

Distinguish between product and period costs, and understand their impact on financial statements.

Identify the role and elements of an internal control system within a manufacturing environment.

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Definitions:

Decision Support System

An informational application that supports complex decision making and problem solving by combining personal knowledge with relevant historical data and projections.

Information Interface

A system or platform through which users can access, interact with, or exchange information.

Desktop Publishing Program

Software designed for creating visual communications such as brochures, business cards, and flyers, enabling users to combine text and graphics.

Word Processing Program

Software used for the creation, formatting, and editing of text documents.