Asked by David Thibodeaux-Benoit on May 04, 2024
Verified
Investments in associates are reported as current assets on the statement of financial position at fair value.
Investments In Associates
Investments in other companies where the investor has significant influence but does not control or jointly control the company.
Current Assets
These are assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.
- Identify the criteria for the classification of investments as current assets and the valuation at fair value.
Verified Answer
LO
Larose OlshoppeMay 10, 2024
Final Answer :
False
Explanation :
Investments in associates are typically reported as non-current assets on the statement of financial position and are accounted for using the equity method, not at fair value.
Learning Objectives
- Identify the criteria for the classification of investments as current assets and the valuation at fair value.