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INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
Comprehensive example - calcs
COMMENT
• Furnit-Your-World Ltd has elected to measure its equity
investments at fair value in accordance with IFRS 9.
• All fair value adjustments recorded by Furnit-Your-World
Ltd since the respective acquisition dates of its
investments in Urban Drapes Ltd and Digital Decor Ltd
must be eliminated in the group financial statements.
• In accordance with IFRS 10, the original cost is eliminated
at consolidation for investments in subsidiaries.
• In accordance with IAS 28, equity accounting is applied to
investments in associates which starts at cost
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