Where an Investment in an Associate Is Made in a Number

question 47

True/False

Where an investment in an associate is made in a number of separate acquisitions, the equity method is applied from the date that significant influence is obtained.

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Definitions:

Outlay

The amount of money spent on a particular expense or investment.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Cash Inflows

Money or other forms of financial assets that come into a company, contributing to its total revenue.

Outlay

The total amount of money spent on a particular project or purchase.