- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
is that means in consolidated income statement,
the urp figure will only affects in the income from associate account by using the
post acquisition of retained earning for the year minus the urp figure??
Will it required to +urp figure of associate on cost of sales?
The urp figure is it required to use the original urp figure x associate %?for the consolidated financial positiion,
the urp figure will affects the investment in associate by using cost of investment + % of post acq retained earning and -urp figure ?“Will it required to +urp figure of associate on cost of sales?”
No, we don’t consolidate the associate’s figures in the statement of profit or loss
We only consider the group’s share of the associate’s profit after tax
THAT figure will change in the workings because we have increased cost of sales and therefore reduced the associate’s profit after tax
“The urp figure is it required to use the original urp figure x associate %?”
Put the FULL pup as a deduction against the associate’s profit after tax
We then take our percentage of that reduced figure for profit after tax
“the investment in associate by using cost of investment + % of post acq retained earning and -urp figure”
The investment in associate figure is taken as cost of investment + share of adjusted post acquisition profits (less any impairments in the value of the investment)
The ‘adjusted post acquisition profits’ is because we’ve just adjusted them for the pup
OK now?
- The topic ‘Associate(continued)’ is closed to new replies.