alleryStart learning →A downstream sale shows the asset's net realisable value has fallen. The investor recognises that loss:
Apro rata to its holding
Bafter a one-year delay
Cin full, with no sharing
Donly within equity
Answer & Solution
Correct answer: C. in full, with no sharing
Where transactions evidence a reduction in net realisable value or an impairment of the assets sold, the loss is recognised in full by the investor.
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