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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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