IFRS每周问答7-与联营企业或合营企业之间的交易.pdfVIP

China 中文 National Technical Weekly HKFRS QAs – QA # 7 March 2014 Since January 2014, we started to publish weekly HKFRS QAs that aim to help you deal with the application issues during the busy financial reporting season. Weekly HKFRS QAs will be issued each Friday. Here is the link to the previous QAs /en/tag- types/hong-kong/qa. As always, if you have any questions on application of HKFRS, please contact us. QA#7 – Transactions with associates or joint ventures Backgroud HKAS 28 Investments in Associates and Joint Ventures contains the following requirements to deal with transactions between an investor and an equity-accounted investee (an associate or a joint venture): Gains and losses resulting from upstream and downstream transactions between an entity (including its consolidated subsidiaries) and its associate or joint venture are recognised in the entitys financial statements only to the extent of unrelated investors interests in the associate or joint venture. [HKAS 28.28] Many of the procedures that are appropriate for the application of the equity method are similar to the consolidation procedures described in HKFRS 10. [HKAS 28.26] HKAS 28 does not define what upstream and downstream transactions are. It merely gives examples on these transactions, as follows: Examples of upstream Sales of assets from an associate or a joint venture to the investor. transactions Examples of downstream Sales or contributions of assets from the investor to its associate or its transactions joint venture. This Weekly Q and A deals with how to apply the above-mentioned requirements in scenarios commonly encountered in practice. 1 Example 1 – Sales of goods by an associate