In joint venture accounting, the equity method requires? (a) Line-by-line consolidation (b) Recognition of share of profits and net assets (c) Cost method only (d) Fair value accounting
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In joint venture accounting, the equity method requires? (a) Line-by-line consolidation (b) Recognition of share of profits and net assets (c) Cost method only (d) Fair value accounting
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- Question: about IFRS 2. Evaluate whether the treatment of the two types of share-based payments as equity (equity- settled share based payment) or liability(cash settled share-based payment) is in line with the enhancing qualitative characteristics in the IASB Conceptual Framework?? Answer shareHow is the investor’s share of gross profit on intra-entity sales calculated? Under the equity method, how does the deferral of gross profit affect the recognition of equity income?
- Q. Which of the following is within the scope of investments accounted for using the equity method of accounting?a) Investment in a wholly-owned or partly-owned subsidiaryb) Joint venture's debt or equity instruments traded in a public marketc) Investment in associate that meets the criteria to be classified as held forsaled) Investment in a financial asset, measured at fair valueDirect cost incurred in a business combination are A. CapitalizedB. ExpensedC. Capitalized, except for costs of issuing equity and debt instrumentsD. Expensed, except for costs of issuing equity and debt instrumentsPlease do not give solution in image format ?
- Which statement is incorrect regarding classification of financial assets? a. An entity can classify financial assets that meet the amortized cost criteria as at FVPL if doing so eliminates or reduces an accounting mismatch. B. In order to be classified at fair value through OCI, a debt instrument needs to have either simple principal and interest cash flows or be held in a business model in which both holding and selling financial assets are integral to meeting management’s objectives. C. An investment in equity instrument may not be classified as financial asset subsequently measured at amortized cost. D. Reclassifications of financial assets are only permitted on the change of an entity’s business model and are expected to occur only infrequently.When shares are issued in exchange of legal services in order to incorporate an entity, the proper account to be debited is ______________, and the amount should be equal to _______________. a. Legal fees, fair value of the services b. Organization costs, par value of the shares c. Organization costs, fair value of the services d. Organization costs, fair value of the shares e. Legal fees, par value of the sharesWhich of the following statements is TRUE regarding the equity method? A. The equity method is used for reporting gains or losses for non-strategic investments. B. The investor's share of the associate's dividends declared is reported as revenue. C. The investor's investment in the associate changes in direct relation to the changes taking place in the associate's equity accounts. D. The equity method reports unrealized gains and losses on revaluations to fair value in net income.
- 3. Under the equity method, which of the following decreases the carrying amount of an investment in associate or joint venture? a. share in the profit of the investee b. share in the other comprehensive income of the investee C. share in the dividends declared by the investee d. a decline in the fair value of the investmentThe proprietary theory, the entity theory, and the funds theory are three approaches to accounting for equities. Required: a. Describe briefly each of these theories b. State your reasons for emphasizing the application of one of these theories to each of the following: i. Single proprietorship ii. Partnership iii. Financial institutions (banks) iv. Consolidated statements v. Estate accountingExplain thoroughly why it is the answer.