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INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Transactions Between Investor & Associate

• Subsidiaries (IFRS 10.B86(c))

• Intragroup balances, transactions, income and expenses

are eliminated in full (including NCI’s share)

• Associates

• Not all balances, transactions, income and expenses are

eliminated

• Eliminate gains and losses from upstream and

downstream transactions ONLY to extent of interest in

the associate

• E.g. At year end, intragroup inventory is on hand

• Intragroup profit is realised to the extent of the other
shareholders’ interests

• Unrealised intragroup profit to extent of investor’s interest

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