The equity method is superior to the cost method of accounting for an investment in an associate/joint venture because:

a. initial recognition of the investment is not at cost.
b. the recognition of income from the investment is not dependent on dividends being received or receivable.
c. the investment carrying amount reflects the net assets of the investee at the reporting date rather than the historic date when its shares were acquired.
d. the equity method is equivalent to measuring the investment at fair value.