According to AASb 10/IFRS 10, an investment in a subsidiary is not consolidated and must be measured at fair value through profit or loss if: a. all of the above b. the parent elects to treat the investment in the subsidiary as a short-term investment c. the main purpose of the subsidiary is to provide services that relate to the investment activities of an investment entity. d. the parent determines that it is an investment entity.

Standard Costing, Ethical Behavior, Usefulness of Costing Pat  James,  the  purchasing  agent  for  a  local  plant  of  the  Oakden  Electronics  Division,  was  considering  the  possible purchase of a component from a new supplier.  The component’s purchase price, $0.90 compared favorably with the standard price of $1.10.  Given the quantity that would be purchased, Pat knew that the favorable price variance would help to offset an unfavorable variance for another component.    By offsetting the unfavorable variance, his overall performance report would be impressive and good enough to help him qualify for the annual bonus. More importantly, a good performance rating this year would help him to secure a position at division headquarters at a significant salary increase. Purchase of the part, however, presented Pat with a dilemma.  Consistent with his past behavior, Pat made inquiries regarding the reliability of the new supplier and the part’s quality.  Reports were basically…