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INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Outcomes

• Define an associate in accordance with IAS 28.

• Discuss the existence or absence of significant influence in an

investment held and the appropriate accounting treatment of the

investment.

• Identify evidence of existence of significant influence in cases where an

investor holds directly or indirectly less than 20% of the voting power of
the investee.

• Apply the equity method in accounting for investments in associates

and joint ventures in the consolidated or group financial statements of

the investor.

• Account for the investment in associate or joint venture in the separate
financial statements of the investor.

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