IAS 28 Associate Companies and Joint Ventures Example 2

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  1. Avatar of olkhova olkhova says:
    October 30, 2012 at 2:55 pm

    Should we somehow consider ‘our’ portion (1/6) of current liabilities?

    • Avatar of olkhova olkhova says:
      October 30, 2012 at 2:58 pm

      Sorry, forgot to mention, in equity method.

      • Avatar of MikeLittle MikeLittle says:
        October 30, 2012 at 3:44 pm

        @olkhova, I do believe that in fact we DO – our share is the share of net assets, not just assets. And there’s now of course no need to specify that we are using the equity method, since that is now the ONLY method allowed. Proportional consolidation of joint ventures has been removed as the benchmark treatment and now the equity method has become the only method ( instead of being the allowed alternative )

        I’ve also amended my way of calculating W5A Investment in Associate. I now tackle it in the same way as I do for a nci in a consolidation – because we ARE the nci in an Associate.

        So now it’s:-

        Value at date of acquisition ( or when it became an associate through part disposal of a subsidiary ), plus

        Share of post-acq retained, less

        Any impairment

        Is that ok?

  2. Avatar of sukiyo0824 sukiyo0824 says:
    May 25, 2012 at 4:16 pm

    To calculate Financial position in EQUITY method..so our answer should be base on video SOFP answer or benchmark answer? Thanks!

  3. Avatar of hasankhan hasankhan says:
    May 23, 2012 at 6:59 pm

    why do we take cost of investment 20000 in working 5 when actually we paid 120000 ….?!?!?!?!?!!? :s

  4. Avatar of jie8503 jie8503 says:
    March 24, 2012 at 7:56 am

    Dear Admin,
    I cannot access this video, and only this video, the screen shows that the service and network failed or the format is not supported.
    Could you help fix the problem?
    Thanks.

  5. Avatar of 7suleo11 7suleo11 says:
    March 14, 2012 at 7:41 pm

    In calculating the W3( consolidated retained earnings, can you explain how the pre-acquisition profit was calculated as £20000

    • Avatar of sheriffdeen sheriffdeen says:
      March 15, 2012 at 8:25 am

      @7suleo11,

      To get 20,000, he deducted 80,000 share capital from total pre-acquisiton net assets of 100,000. Since, Net Asset is the addition of Share Capital and Retain Earning.

      Hope I got u question right!

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