The Equity Method Usually Is the Most Appropriate Method for Accounting

question 72

True/False

The equity method usually is the most appropriate method for accounting for investments of less than a 20 percent interest.

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Definitions:

Agricultural Produce

Refers to the harvested product of biological assets (plants and animals) that are intended for sale or processing.

IASC

The International Accounting Standards Committee, a body responsible for developing the International Accounting Standards.

Agricultural Activity

The management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets.

AASB 141

An accounting standard regarding agriculture under the Australian Accounting Standards Board that guides the accounting for agricultural activity.