Page 47 - Accountancy for Advanced Secondary Schools Teachers Guide Form Five
P. 47
(b) Equity method: Explain the accounting treatment for
significant influence investments, typically between 20% and
50% ownership.
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(c) Consolidation: Discuss when and how to consolidate
investments where the investor has control, typically over
50% ownership.
4. Valuation and measurement
(a) Initial recognition: Explain how to initially recognise
investments at cost, including transaction costs.
(b) Subsequent measurement: Discuss how to subsequently
measure investments at fair value or amortized cost,
depending on their classification.
(c) Impairment: Cover the procedures for recognising and
measuring impairment losses on investments.
5. Realized and unrealized gains and losses
(a) Realized gains/losses: Teach how to recognise gains and
losses when investments are sold.
(b) Unrealized Gains/Losses: Explain the treatment of
unrealised gains and losses for trading and available-for-sale
securities.
6. Reporting and disclosure
(a) Statement of financial position: Show how investments
are reported on the balance sheet, depending on their
classification.
Teacher’s Guide Form Five
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ACCOUNTANCY_TG_2024_FINAL DUMMY.indd 33 23/06/2024 17:45