Reference no: EM132496094

Question 1: If the inventor ceases to have significant influence over an associate, how should theinvetsmnet be treated?

a. The investment should be treated at cost

b. It should still be treated using equity method

c. It should be treated in accordance with IFRS 9

d. The investment should be frozen at the date at which the investor ceases to have significant influence

Question 2: What is the best evidence of fair value of a financial instrument?

a. The present value of the contractual cash flows less impairment

b. Its quoted price, if an active market exists for the financial instrument

c. Its cost, including transactions costs directly attributable to its purchase, origination or issuance

d. Its estimated value determining using discounted cash flows techniques, option pricing models, etc.

Question 3: It is a method of accounting whereby the investment is initially recognized at cost and adjusted thereafter for the post acquisition change in the investor's share of the investee's net assets:

a. Consolidated method

b. Cost method

c. Equity method

d. Fair value method