Question: In this chapter, you have learned about three models under IFRS that can be used to account for equity investments after they are acquired: fair

In this chapter, you have learned about three models under IFRS that can be used to account for equity investments after they are acquired: fair value, cost, and equity.
Instructions
Write a memo explaining when each model should be used for equity investments and the impact that each of these has on the income statement and the statement of financial position. Is it possible for management to influence or manipulate the choice of model to be used? Under ASPE is there more choice?

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Under IFRS equity investments can be accounted for using the fair value cost and equity methods Fair value model The fair value model is used for nonstrategic equity investments quoted in an active ma... View full answer

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