Good Morning Sir,
I am going around in circles here, trying to find the answer on the internet.
Providing an entity has an associate (which fulfils all the requirements to be classified as an associate) but the entity has no other connection with any other businesses (doesn’t have any other associates or subsidiaries and is not an associate or subsidiary of any other business), what is the correct procedure?
– does the entity need to prepare consolidated statement?
– if not, does it have to employ the equity method at all?
– it it doesn’t have to employ equity method, does it have a choice to do so?
We only prepare consolidated accounts if we have control of a subsidiary. If we have an associate then we must equity account for it.
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