alleryStart learning →Share of an associate's losses equals the interest. The investor:
Abooks losses in equity
Bwrites off all reserves
Cstops recognising more losses
Dreverses past profits
Answer & Solution
Correct answer: C. stops recognising more losses
Once the share of losses reaches the interest, recognition of further losses stops unless obligations have been incurred.
Keep practising Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures
Browse all Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures questions for CA Final, or explore more Financialreporting topics.
Related questions
Equity accounting is usually applied where the investor holds what share of voting shares?If facts and circumstances change, an entity should:A joint operator recognises in a joint operation:A joint venturer accounts for its interest in a joint venture using:In a joint venture, the parties with joint control have rights to the:A joint arrangement is one in which two or more parties have:A parent that skips consolidation and prepares separate statements must disclose:In a qualifying reorganisation, cost of the new parent's investment is: