When one corporation has a controlling interest in another corporation whose shares are not actively traded, under ASPE, the investment is accounted for using
A) either the consolidation method or the equity method or the cost method.
B) the consolidation method.
C) either the consolidation method or the equity method.
D) either the consolidation method or the equity method or the cost method or the FV-OCI method.

Question

Quizplus · Accepted Answer

Under ASPE (Accounting Standards for Private Enterprises) in Canada, when one corporation has a controlling interest in another corporation whose shares are not actively traded, the investment can be accounted for using either the consolidation method, the equity method, or the cost method. This provides flexibility in accounting for such investments based on the circumstances and the level of control or influence over the investee.

When One Corporation Has a Controlling Interest in Another Corporation