CERTYNEX IFRS ACADEMY

Under IAS 28, which statements about the investor's interest in the associate, which caps the share of losses recognised, are correct? More than one answer is possible.

The interest includes the carrying amount of the equity-accounted investment.

Excess losses are allocated to the other components of the interest in the reverse order of their seniority.

Excess losses are allocated first to the most senior components of the interest, before the most subordinated ones.

The investor's trade receivables from the associate form part of the interest, in the same way as a long-term loan.

The interest also includes long-term receivables or loans that, in substance, form part of the net investment in the associate.