When an investment ceases to be an associate, the fair value of theinvestment at the date when it ceases to be an associate:Is regarded as its cost on initial recognition as a financial asset.Is regarded as its fair value on initial recognition as a financial asset.O Is regarded as its fair value on initial recognition as a financial liability.O Is regarded as its amortized cost on initial recognition as an investment.

Investment is the amount saved by the investor in order to earn regular income as well as get the…

When an investment ceases to be an associate, the fair value of the investment at the date when it ceases to be an associate: Is regarded as its cost on initial recognition as a financial asset. O Is regarded as its fair value on initial recognition as a financial asset. O Is regarded as its fair value on initial recognition as a financial liability. Is regarded as its amortized cost on initial recognition as an investment.

When an investment ceases to be an associate, the fair value of the investment at the date when it ceases to be an associate: Is regarded as its cost on initial recognition as a financial asset. O Is regarded as its fair value on initial recognition as a financial asset. O Is regarded as its fair value on initial recognition as a financial liability. Is regarded as its amortized cost on initial recognition as an investment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

When an investment ceases to be an associate, the fair value of the
investment at the date when it ceases to be an associate:
Is regarded as its cost on initial recognition as a financial asset.
Is regarded as its fair value on initial recognition as a financial asset.
O Is regarded as its fair value on initial recognition as a financial liability.
O Is regarded as its amortized cost on initial recognition as an investment.

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