When an investor uses the equity method to account for investment in ordinary shares, the reported net loss of the associate should be recorded O Proportionate to the share in thenet loss of the associate and presented under the profit or loss section. O A deduction from goodwill. O As deduction in full in the investment account. O An addition from the investment account.
When an investor uses the equity method to account for investment in ordinary shares, the reported net loss of the associate should be recorded O Proportionate to the share in thenet loss of the associate and presented under the profit or loss section. O A deduction from goodwill. O As deduction in full in the investment account. O An addition from the investment account.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:When an investor uses the equity method to account for investment in ordinary shares, the
reported net loss of the associate should be recorded *
O Proportionate to the share in thenet loss of the associate and presented under the profit or loss section.
O A deduction from goodwill.
O As deduction in full in the investment account.
O An addition from the investment account.
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