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Hi Sir, was working a specimen paper and found the below question. Could you kindly advise where do you tackle associations in your lecture notes?
On 1 January 20X7 Hinge Co acquired a 25% interest in Bolt Co. Bolt Co will be treated as an associate in Hinge Co’s consolidated statement of profit or loss for the year ended 31 December 20X7.
Complete the following table showing how the results of Bolt Co will be reported in Hinge Co’s consolidated statement of profit or loss for the year ended 31 December 20X7.
Correct Answer
Consolidated investment income will include no dividends received from Bolt Co (Note 1).
Consolidated profit before tax will include 25% of Bolt’s profit after tax (Note 2)
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