Any excess of the investor's share of the net fair value of an associate's identifiable assets and liabilities over the cost of the investment is recognised as income in the determination of the investor's share of the associate's profit or loss in the period in which the investment is acquired.

Question

Quizplus · Accepted Answer

This statement is true. It is in accordance with International Financial Reporting Standards (IFRS) which state that any excess of the fair value of identifiable assets and liabilities of an associate over the cost of the investment is recognized as income in the investor's share of the associate's profit or loss.

Any Excess of the Investor's Share of the Net Fair