Where an investor has discontinued the use of the equity method because the associate has incurred losses, it must disclose the:
A) unrecognised share of current period and cumulative losses of the associate.
B) reason why it has discontinued the method.
C) accounting policy it has adopted in place of the equity method.
D) effect on the statement of changes in equity if it had continued to use the method.

Question

Quizplus · Accepted Answer

The investor must disclose the unrecognised share of current period and cumulative losses of the associate when it discontinues the use of the equity method due to the associate incurring losses.

Where an Investor Has Discontinued the Use of the Equity