Chapter 18 Flashcards
1
Q
This is the power to participate in the financial and operating policy decisions of the investee but is not in control or joint control of those policies.
A
Significant influence
2
Q
This what you call the investee entity over which the investor has significant influence.
A
Associate
3
Q
True or False: An entity has significant influence over another entity if it is part of the BOD despite having less than 20% shares.
A
True
4
Q
On initial recognition, at what is the investment associate measured?
A
At cost (Purchase price plus transaction costs)
5
Q
Investments in associate shall be accounted for using what method and under what pAS?
A
Equity method under PAS 28
6
Q
When shall the equity method be applied?
A
Starting on the date when an investor obtains significant influence
7
Q
A
