Adjustments Made for the Purpose of Calculating the Incremental Adjustment

question 21

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.

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Definitions:

Infantile Amnesia

Inability to recall events that occur prior to the age of three or so; also termed childhood amnesia.

Serial-position Effect

A memory phenomenon in which recall accuracy varies as a function of an item's position in a study list, with better recall of items at the beginning and end.

Encoding Specificity

The theory that memory is enhanced when information available at encoding is also available at retrieval.