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non-cash consideration for stake in associate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › non-cash consideration for stake in associate

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • April 10, 2021 at 12:53 pm #616652
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    ” When an investor contributes assets in exchange for an equity interest in the
    associate, the investor recognises the portion of the gain or loss on disposal
    attributable to the other investors in the associate (i.e. if the investor owns
    40% of the associate, it recognises 60% of the gain or loss).”

    sir can you tell me the journal entry of this?? so that i can understand where the effects can be seen.

    many thanks!

    April 10, 2021 at 1:38 pm #616660
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    Dr Investment in associate
    Cr PPE (for example)
    Cr P&L (if it’s a profit)

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