alleryStart learning →Beyond nil value, extra losses are recognised if the investor has?
AGuaranteed its debts
BSold goods to it
CAppointed a director
DEarned dividends
Answer & Solution
Correct answer: A. Guaranteed its debts
Additional losses are provided to the extent the investor has guaranteed or is otherwise committed to the associate's obligations.
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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