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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