Entity A acquired an investment in associate for P1M many years ago. At the end of the current reporting period, the investment has a fair value of P2.9M. If the equity method is used, the investment would have a current carrying amount of P2.6M. In Entity A's separate financial statements, the

Entity A acquired an investment in associate for P1M many years ago. At the end of the current reporting period, the investment has a fair value of P2.9M. If the equity method is used, the investment would have a current carrying amount of P2.6M. In Entity A's separate financial statements, the

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 23E

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Entity A acquired an investment in associate
for P1M many years ago. At the end of the
current reporting period, the investment
has a fair value of P2.9M. If the equity
method is used, the investment would have
a current carrying amount of P2.6M. In
Entity A's separate financial statements, the
investment should be valued at
O 1,000,000.
O 2,600,000.
O 2,900,000.
any of these, as a matter of an accounting
policy choice

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