Question #5
Reading: Reading 8 Intercorporate Investments
PDF File: Reading 8 Intercorporate Investments.pdf
Page: 3
Status: Unattempted
Correct Answer: A
Question
Under IFRS rules, which of the following accounting treatments is most preferred for joint ventures where there is shared control?
Answer Choices:
A. Acquisition method
B. Proportionate consolidation method
C. Equity method
Explanation
Only equity method is now permitted under both IFRS and U.S. GAAP.