CERTYNEX IFRS ACADEMY

Which statements about the associate, significant influence and the joint venture are correct? More than one answer is possible.

The equity method measures the investment at fair value every year, with no reference to the initial cost.

An associate is an entity over which the investor has significant influence.

Significant influence is the power to decide, in place of the other shareholders, the financial and operating policies of the investee.

The equity method recognises the investment at cost, then adjusts it for the investor's share of the net assets.

A joint venture is a joint arrangement in which the parties with joint control have rights to the net assets.