Summary: IAS 28 - Investment in Associates [EFIN3708 / EACC5808 /EACC6808] - The Annotated IFRS Standards (2020/21)
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Course
Financial Accounting (EFIN3708)
Institution
University Of The Freestate (UFS)
Book
The Annotated IFRS Standards
Notes of a Third year student studying Bachelors of Accounting at the University of the Free State. With this notes that i have compiled, i was able to proudly say that i received a distinction in Financial Accounting by using this notes. If you are struggling with Financial Accounting use this not...
Journals
Investment in associate
Debit Credit
NO "@ acquisition eliminate journal"
(RE @ beg - RE @
Investment in associate (SFP) Acq) * %
All based on
(RE @ beg - RE @
Retained earnings (SCE) Acq) * %
associates
info
Investment in associates (SFP) Profit after tax * %
Share in profit of associates (SPL) Profit after tax * % Will do 2 journals if RS @ beginning and current
Beginning - (RS @ beg - RS @ Acq)* %
RS * %
Current - (RS for current - Adjustment @ acq) * %
Investment in associate (SFP)
Revaluation surplus (OCI) RS * %
Based on
beginning &
Dividends (SPL) Div * %
current part of
Investment (SFP) Div * % analysis
Gain on investment
Debit Credit
Investment in associate (SFP) Gain Year of Only for gain
acquisition No goodwill journal -
Share in profit of associate (SPL) Gain
goodwill included in cost of
investment
Investment in associates (SFP) Gain Years after
Retained earnings (SCE) Gain acquisition
, All info of investor +/- % info from investment
Abridged Statement of changes in equity for the year ended
Revaluation
Retained earnings
surplus
Balance of investor @ beg +/- what
happened in journals
Balance at ……. (Beginning)
Balance ADD
Profit after tax
Only dividends
Dividends from investor
Balance at …… (End)
Exclude dividend income
All info of investor +/- % info from investment received from assoociate
Abridged Statement of profit or loss and other comprehensive - see journal
income for the year ended
Profit before profit from associate
Profit from associate
Follow
Profit before tax Balance
Journals
Income tax expense
Profit for the year
Other comprehensive income
Items that will not be reclassified to profit/ loss
Revaluation
Share of OCI of associate
Total comprehensive income attributable to
Investment as per SFP
Cost Amount paid by Investor
Retained Earnings RE as @ analysis + gain
Revaluation RS as @ analysis
Shared profit Profit - Dividends (as @ analysis)
Sum
, Investment in Associates & Joint ventures
NEW
Do NOT have control - but has Significant Influence
significant influence The power to participate in the financial and operating policy decisions of the
investee, but in not control or joint control of those policy
Determine 20%:
aggregate of the holdings in
# Presume significant influence if 20% or more of voting power, unless demonstrated otherwise (par 5)
that associate or JV by the
parent and its subsidiaries.
# Significant influence when: (par 27)
- Representation on board/ governing body
- Material transaction between the entity and its investee
- Interchange of managerial personnel
- provision of essential technical info
- Participation in decision making (par 6)
Indication of significant influence in question
Stated that the investor has the
State indicaters according to
Stated by question power to participate in fnancial and State % shareholdings
par 6
operating decisions of infestee
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