Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

BPP Black Friday sale! (28 Nov-1 Dec)

40% discount on all BPP books specially for OpenTuition students!
Get it here >>

Equity accounting – associates

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Equity accounting – associates

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 12, 2019 at 9:25 pm #512146
    asan505
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Which transactions are eliminated in equity accounting.

    For example: Company A owns 20% in Company B. Both are insurance companies. Company B sells life insurance policies to Company A. Should this transaction be eliminated or not and if yes what would be the entries.

    Thank you

    April 16, 2019 at 8:30 pm #513152
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    Hi,

    There are no elimination of intra-group transactions or balances as the associate sits outside the group. We only adjust for the parent’s share of any PUP.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.