IAS 28 Associate Companies and Joint Ventures Example 2

View all free ACCA lectures >> This P2 lecture is based on OpenTuition course notes, view or download here>>

[jwplayer file=”mp4:vod/acca.opentuitioncom/p2/P2d1p4a.mp4″ streamer=”rtmp://r.acca.opentuitioncom.netdna-cdn.com/play” provider=”rtmp” image=”http://opentuition.com/acca_lectures.jpg” html5_file=”http://d.acca.opentuitioncom.netdna-cdn.com/play/_definst_/mp4:vod/acca.opentuitioncom/p2/P2d1p4a.mp4/playlist.m3u8″]


      • Profile photo of MikeLittle says

        @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?

  1. avatar says

    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?

    • Profile photo of sheriffdeen says


      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!

Leave a Reply