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accounting for associates

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › accounting for associates

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
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  • July 23, 2018 at 1:35 pm #464356
    dtaderera
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    do we apportion profit on time basis in accounting for associates if the time of the union is less than a year before ending of accounting period or we just split profit based on % owned?

    July 23, 2018 at 10:24 pm #464408
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    We equity account from the day we gain significant influence, so If we acquire the associate mid year then we will pro-rate the profits and then take our share of these profits.

    Thanks

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