alleryStart learning →Under the equity method, an investment is initially recognised at:
Afair value of net assets
Bface value of shares
Ccost of the investment
Dbook value of investee
Answer & Solution
Correct answer: C. cost of the investment
The equity method starts with the investment recognised at cost and then adjusts it for post-acquisition changes.
Keep practising Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures
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Related questions
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