If a company reporting under ASPE decides to use the cost model to account for an investment in common shares, dividends received should be
A) credited to the Investment account.
B) credited to the Dividend Revenue account.
C) debited to the Investment account.
D) recorded only when 20% or more of the shares are owned.

Question

Quizplus · Accepted Answer

Under ASPE, when using the cost model for investments in common shares, dividends received are recognized as income and should be credited to the Dividend Revenue account.

If a Company Reporting Under ASPE Decides to Use the Cost