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INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Equity accounting

• What is not included in the end point?

• Actual underlying assets

• Associate’s assets represented by “Investment in Associate”

• Individual line items in SPLOCI

• Individual line items represented by 2 line items

• Share of associate’s P/L
• Share of associate’s OCI

• No goodwill on a separate line item

• Implied goodwill forms part of “Investment in Associate”

• NCIs

• Only bringing in investor’s share

• Investor is the NCI

• Dividends declared and paid from associate to parent

• Eliminated against “Investment in Associate”

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