alleryStart learning →After the method is discontinued, the carrying amount then becomes what?
ARevalued stake value
BCost for later accounting
CMarket value at date
DFace value of shares
Answer & Solution
Correct answer: B. Cost for later accounting
The last equity-method carrying amount is treated as the cost for subsequent accounting under AS 13.
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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