IFRS -equity method Flashcards
1
Q
what is the term for investee
A
associate
2
Q
what type of investors have significant influence over investee’s
A
venture capital organizations, mutual funds, and unit trusts
3
Q
what is the report date time frame
A
no more than 3 months
4
Q
when does an investor discontinue recognizing shares
A
investee losses > investors investment
5
Q
what is the exception to an investor discontinuing recognizing shares
A
if the investor has obligations or commitments to make payments of associate, continue to recognize losses
6
Q
how is impairment loss measured
A
as the excess of the carrying amount of the investment over the recoverable amount
7
Q
if investment is sold how do you adjust
A
adjust to lower of fair value or carrying amount and reclassify as held for sale
