Ias 28 Investments In Associates Pdf Download, download pdf service marketing book
4fb9d08492 Impairment. Disclosure There are no disclosures specified in IAS28. [IAS 28(2011).24] Changes in ownership interests. [IAS 28(2011).18] When an entity has an investment in an associate, a portion of which is held indirectly through a venture capital organisation, or a mutual fund, unit trust and similar entities including investment-linked insurance funds, the entity may elect to measure that portion of the investment in the associate at fair value through profit or loss in accordance with IFRS 9 regardless of whether the venture capital organisation, or the mutual fund, unit trust and similar entities including investment-linked insurance funds, has significant influence over that portion of the investment. Instead, IFRS 12 Disclosure of Interests in Other Entities outlines the disclosures required for entities with joint control of, or significant influence over, an investee. But equity accounting is not required where the investor would be exempt from preparing consolidated financial statements under IAS 27.
Any remaining portion is accounted for using the equity method until the time of disposal, at which time the retained investment is accounted under IFRS 9, unless the retained interest continues to be an associate or joint venture. [IAS 28(2011).35] Application of the equity method by a non-investment entity investor to an investment entity investee. Please read our cookie notice for more information on the cookies we use and how to delete or block them. [IAS 28(2011).33, IAS 28(2011).34] Accounting policies. In applying the equity method, the investor should use the financial statements of the associate as of the same date as the financial statements of the investor unless it is impracticable to do so. Objective of IAS 28 The objective of IAS 28 (as amended in 2011) is to prescribe the accounting for investments in associates and to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures. The loss of significant influence can occur with or without a change in absolute or relative ownership levels. [IAS 28(2011).9] The equity method of accounting Basic principle. On acquisition, any difference between the cost of the investment and the entitys share of the net fair value of the investee's identifiable assets and liabilities in case of goodwill is included in the carrying amount of the investment (amortisation not permitted) and any excess of the entity's share of the net fair value of the investee's identifiable assets and liabilities over the cost of the investment is included as income in the determination of the entity's share of the associate or joint ventures profit or loss in the period in which the investment is acquired. Furthermore, the concepts underlying the procedures used in accounting for the acquisition of a subsidiary are also adopted in accounting for the acquisition of an investment in an associate or a joint venture.