Which of the following statements is correct concerning reporting interests in jointly controlled enterprises in compliance with the Accounting Standards for Private Enterprises (ASPE)?
A) They must be reported using proportionate consolidation.
B) They must be reported using the equity method.
C) They must be reported using the cost method.
D) May report using the cost method or the equity method.

Question

Quizplus · Accepted Answer

Under ASPE, an entity can choose to report interests in jointly controlled enterprises using either the cost method or the equity method. This provides flexibility in accounting for such interests, unlike IFRS which has more prescriptive requirements.

Which of the Following Statements Is Correct Concerning Reporting Interests