alleryStart learning →Which item can form part of the net investment in an associate?
AOrdinary trade receivables
BOrdinary trade payables
CLong-term loans not to be repaid
DCollateralised long-term loans
Answer & Solution
Correct answer: C. Long-term loans not to be repaid
Items with settlement neither planned nor likely, such as preference shares and long-term loans, are in substance an extension of the investment.
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