ABC Limited acquired 30% of XYZ Inc. on Jan 01, Year 1. ABC Limited uses ASPE and XYZ Inc.'s fair value is not readily available. Which following statements is correct

Question 7Select one:

a.

ABC Limited is required under ASPE to use fair value method to account investment in XYZ Inc.

b.

ASPE requires ABC Limited to use equity method only to account the investment in XYZ Inc.

c.

ABC Limited must prepare consolidated financial statements at the end of each fiscal year.

d.

ABC Limited can either use equity method or cost method to account the investment in XYZ Inc