1.13 An investment in an associate is normally accounted for using the equity method. This method requires that the investment in the associate is_______. (1)
A. initially recognised at cost and not adjusted thereafter
B. initially recognised at cost and then adjusted in each subsequent accounting period to reflect the investor's share of the associate's profit or loss for the period
C. recognised at fair value
D. initially recognised at cost and then adjusted to fair value in subsequent accounting periods
1.14 The categories of joint venture recognised by international standard IAS31 do not include__________. (1)
A. jointly controlled entities
B. jointly controlled operations
C. jointly controlled contracts
D. jointly controlled assets
1.15 A contractual agreement where two or more parties undertake an economic activity that is subject to joint control is called__________. (1)
A. joint venture
B. joint control
C. control
D. controlled Operations
1.16 A party to a joint venture who has joint control over that joint venture is called______. (1)
A. controller
B. venturer
C. manager
D. capitalist
1.17 If the interest in a joint venture is classified as held for sale, then which of the following methods are appropriate? (1)
A. Equity method
B. Proportionate consolidation method
C. Full consolidation method
D. None of the above