CERTYNEX IFRS ACADEMY

Which statements about the exemptions from the equity method are correct? More than one answer is possible.

A small investor is relieved of applying the equity method to its associates, whatever its other characteristics.

A venture capital organisation or a mutual fund may choose to measure its investments in associates at fair value through profit or loss under IFRS 9.

An investor exempt from presenting consolidated statements under IFRS 10 (para. 4(a)) does not apply the equity method.

The exemption conditions are cumulative and mirror those of the intermediate parent: ownership, unlisted securities, no filing with a regulator, IFRS statements published by the higher parent.

Fair value measurement of associates is open to any investor that prefers a simpler treatment than the equity method.