Chapter 9
Investments
436
AS-16 (
2
3
4
)
Discuss the main difference between fair value method and the fair value through profit and
loss method.
AS-17 (
3
)
Under the equity method, net profit from the investee company is recorded proportionately
as part of the investment revenue for the investor. When the investor company receives cash
dividend from the investee, which account should be credited?
AS-18 (
3
)
Under what circumstances should the cost method be used for recording equity investments?
