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Basic Question 6 of 10
Which of the following is not a disclosure required under the equity method?
B. The difference between the amount in the investment account and the amount of underlying equity in the investee's net assets.
C. The name of the investor and the percentage of ownership.
D. The aggregate value of each identified investment based on quoted market price.
A. The accounting policies of the investor related to investments.
B. The difference between the amount in the investment account and the amount of underlying equity in the investee's net assets.
C. The name of the investor and the percentage of ownership.
D. The aggregate value of each identified investment based on quoted market price.
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan2 | C is for consolidation method. |
| quanttrader | name and percentage of ownership not required under equity method |
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Learning Outcome Statements
describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for 1) investments in financial assets, 2) investments in associates, 3) joint ventures, 4) business combinations, and 5) special purpose and variable interest entities;
distinguish between IFRS and US GAAP in their classification, measurement, and disclosure of investments in financial assets, investments in associates, joint ventures, business combinations, and special purpose and variable interest entities;
analyze how different methods used to account for intercorporate investments affect financial statements and ratios.
CFA® 2025 Level II Curriculum, Volume 2, Module 10.