In financial statements that are not separate financial statements, how should a joint venturer account for its interest in a joint arrangement? a. As an investment measured either at cost, fair value or using equity method b. As an investment measured using the equity method c. By using a T-account d. By recognizing its share in the assets, liabilities, income and expenses of the join venture and adding them line by line to similar accounts
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- When an entity prepares separate financial statements, it shall account for investments in associates A. At cost. B. Any of the choices. C. In accordance with PFRS 9. D. Using the equity method as described in PAS 28.Choose the correct. Under fair-value accounting for an equity investment, which of the following affects the income the investor recognizes from its ownership of the investee?a. The investee’s reported income adjusted for excess cost over book value amortizations.b. Changes in the fair value of the investor’s ownership shares of the investee.c. Intra-entity profits from upstream sales.d. Other comprehensive income reported by the investee.What information will be of interest to the partners of a joint venture at the closing of the undertaking? Select one: a. Amount do the partners receive in total, i.e. from compensation for services rendered, as well as from their profit share from the venture. b. Profits were realised by the venture prior to any compensation to the partners for their contributions c. The ultimate amount to be distributed according to the profit-sharing ratio. d. All of the given options are correct.
- Under fair-value accounting for an equity investment, which of the following affects the income the investor recognizes from its ownership of the investee? The investee’s reported income adjusted for excess cost over book value amortizations. Changes in the fair value of the investor’s ownership shares of the investee. Intra-entity profits from upstream sales. Other comprehensive income reported by the investee.What are the four different methods of accounting for investment? Please concisely explain the four different methods of accounting for investment. Please show the different debits and credits to an investment account under the equity method of accounting. Please concisely explain how the excess investment cost over book value is allocated. When is the intra-entity’s profits recognized on transfers between the investor and investee? What is the controlling interest percentage for a consolidated accounting financial statement? What is the controlling interest percentage for a business combination tax return? what does a “downstream” sale of inventory refer to and when is the profit recognized? What does an “upstream” sale of inventory refer to and when is the profit recognized? What is the difference between accounting under the “partial” equity and “full equity method?Q. Which of the following is within the scope of investments accounted for using the equity method of accounting?a) Investment in a wholly-owned or partly-owned subsidiaryb) Joint venture's debt or equity instruments traded in a public marketc) Investment in associate that meets the criteria to be classified as held forsaled) Investment in a financial asset, measured at fair value
- Which of the following statements are true?(i) Equity accounting method is used to account for investor-associate relationship(ii) Full consolidation is used to account for investor-associate relationship.(iii) Equity accounting method is used to account for parent-subsidiary relationship.(iv) The equity accounting method is used to account for investor-joint venture relationship.Select one:a.(i) and (iv) onlyb.(ii) and (iii) onlyc.(ii) and (iv) onlyd.(iii) and (iv) onlyWhich financial statement of a partnership reflects the profitability of the business? A. Statement of Financial Position B. Statement of Cash Flows C. Statement of Comprehensive Income D. Statement of Changes in Equity3. Under the equity method, which of the following decreases the carrying amount of an investment in associate or joint venture? a. share in the profit of the investee b. share in the other comprehensive income of the investee C. share in the dividends declared by the investee d. a decline in the fair value of the investment
- Which of the following statements is TRUE regarding the equity method? A. The equity method is used for reporting gains or losses for non-strategic investments. B. The investor's share of the associate's dividends declared is reported as revenue. C. The investor's investment in the associate changes in direct relation to the changes taking place in the associate's equity accounts. D. The equity method reports unrealized gains and losses on revaluations to fair value in net income.Can a Joint venture use equity method of accounting? how bout the share of net income of each individual corporation, how would you account for that?2. PAS 28 requires the use of the equity method. Under this method, an investment in associate or joint venture is initially at 2. PAS 28 requires the use of the equity method. Under a. method, an investment in associate or joint venture is initially b. and subsequently measured at Initial measurement 2. En in Subsequent measurement initial cost, adjusted for the investor's share in the investee's changes in a. fair value pe equity cost, adjusted for the investor's share in the investee's changes in equity b. cost C. fair value plus fair value transaction costs d. fair value plus initial cost, adjusted for the investor's share in the investee's changes in transaction costs equity 3.