Which of the Following Statements More Adequately Reflects the Current

Multiple Choice

Which of the following statements more adequately reflects the current accounting position in regards to accounting for an associate entity?

A) The reporting by the investor of dividend revenue under the cost method is perceived to be an adequate indicator of investment performance in the case of a significant investment.
B) Even with representation on the associate's Board of Directors, an investor cannot have the power to manipulate its reported earnings (through participation in the dividend policy decisions of the associate) and thus present a misleading picture of its earnings performance.
C) Because of the varying dividend policies of investees it is unlikely that dividend income will provide a reliable indicator of the investment performance of any associate.
D) None of the above.