Where Which of the Following Conditions Exist, Is the Equity

question 16

Multiple Choice

Where which of the following conditions exist, is the equity method not applied to associates? I. The entity is a wholly owned subsidiary or a partly owned subsidiary and its owners do not object to the entity not applying the equity method.
II) The entity's debt or equity securities are not traded in a public market.
III) The entity has not filed financial statements with a regulatory organisation for the purpose of issuing any class of securities in a public market.
IV) The ultimate parent of the entity publishes consolidated financial statements that comply with IFRS.

• A) I and IV only
• B) II and III only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Universal Instantiation

A logical rule stating that if something is true for everything in a certain set, then it is true for any specific thing in that set.

Universal Instantiation

A logical rule of inference that allows the derivation of a particular instance from a general statement, often used in formal proofs.

Universal Generalization

A logical rule that states if something is true for all members of a class, it is true in general.

Quantifier Negation

A logical operation that reverses the scope of a quantifier in a statement, changing its overall truth value.