Page 19 - FAC4862_4 Topic 2 slides cm

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Intragroup transactions

• When an investor contributes or sells assets to an

associate, recognition of any portion of a gain or

loss from the transaction should reflect the

substance of the transaction.

• While the assets are retained by the associate, and

provided the investor has transferred the significant

risks and rewards of ownership, the investor should

recognise only that portion of the gain or loss that

is attributable to the interests of the other investors

in the associate.

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