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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Consolidated Financial Statement
In Consolidated Profit and Loss,
Do we add line by line Expenses and Revenues of Associate? Like we add line by line of Subsidiary to Parent’s.
No.
As is explained in Chapter 25 of our free lecture notes (and the lecture that goes with it):
“The investing company should add to the consolidated profit the group’s share of the associated company’s profit after tax.
(Note that the associate’s revenue and costs are not added to those of the group as with a subsidiary – we simply add the group’s share of the associate’s profit.”
Thank you 🙂
You are welcome.