企业合并5高财部 根据 ifrs3 Associates.pptVIP

Session 5 Associates Associates IAS 28 investments in associates Associates in the consolidated statement of financial position Associates in the consolidated income statement Definition of an associate IAS28 defines an associate as: An entity over which the investor has significant influence and that is neither a subsidiary nor an interest in joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Significant influence is assumed with a share holding of 20% to 50%. Principles of equity accounting and reasoning behind it Equity accounting is a method of accounting that brings an associate into the parent company’s financial statements initially at cost. The carrying amount of the investment is then adjusted in each period by the group share of the profit of the associate less any impairment losses. Cont. The investment in the associate is therefore stated at: Cost plus Group share of retained post-acquisition profits; less Amounts written off (i.e. impairment losses) The effect of this is that the consolidated statement of financial position includes: 100% of the assets and liabilities of the parent and subsidiary company on a line by line basis An ‘investments in associates’ line within non-current assets which includes the group share of the assets and liabilities of any associate. Cont. The consolidated income statement includes: 100% of the income and expenses of the parent and subsidiary company on a line by line basis One line ‘share of profit of associates’ which includes the group share of any associate’s profit after tax Note that in order to equity account, the parent company must already be producing consolidated financial statements (i.e. it must already have at least one subsidiary) 2 Associates in the consolidated statement of financial position Preparing the CSFP including an associate The CSFP is prepared on a norm