The amount recognised in the asset class 'investments accounted for using the equity method' represents:
A) cost of shares acquired less share of other entity's profits.
B) share of other entity's profits only.
C) cost of shares acquired less share of other entity's profits plus dividends received from other entity.
D) cost of shares acquired plus share of other entity's profits less dividends received from other entity.

Question

Quizplus · Accepted Answer

The amount recognised in the asset class 'investments accounted for using the equity method' includes the cost of shares acquired plus the investor's share of profits or losses of the investee, less dividends received from the investee. This is in accordance with the accounting standard IAS 28, which requires the equity method to be used to account for investments in associates.

The Amount Recognised in the Asset Class 'Investments Accounted for Using