alleryStart learning →The equity method is not used if the associate operates under what?
AA different tax regime
BSevere fund-transfer limits
CA foreign management team
DA lower credit rating
Answer & Solution
Correct answer: B. Severe fund-transfer limits
Severe long-term restrictions that impair the transfer of funds to the investor make the method inappropriate.
Keep practising AS 23 Investments in Associates
Browse all AS 23 Investments in Associates questions for CA Inter, or explore more Accounting topics.
Related questions
An enterprise controlled by another enterprise is called a what?Consolidated financial statements present a group as what?An enterprise is NOT an associate if it is what?A 40% held associate revalues assets with a surplus of Rs 2,00,000. Adjustment to carryingA 30% associate sold goods to the investor at Rs 50,000 profit, still unsold. Elimination?A Rs 4,00,000 investment has an equity carrying amount of Rs 4,50,000 when influence ends.Unrecognised loss share is Rs 30,000. The investor's share of the next profit is Rs 50,000Rs 8,00,000 buys 40% of an associate with net assets of Rs 15,00,000. What is the goodwill