Associate Losses

Hello! for Associates,

If losses made are in excess of investment, you should discontinue recognizing the share of further losses.

And you should recognize the excess losses as a liability only if the entity has a legal/ constructive obligation.

Lets say,
total loss= 800
investment in Assoc= 600
excess= 200

if theres no obligation
DR SOPL 600
CR investment in A 600

if there is an obligation
DR SOPL 800
CR Investment in A 600
CR Liability 200

is this correct?