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I’m confused as how to arrive at the investment figure on consolidation under NCA. On some questions they add to investment by the amount invested in associate/subsidiary, while on other questions they deduct from investment or even leave out investments entirely. Can someone briefly explain it to me please.
Much appreciated
On the consolidated statement of financial position the figure for Investments should NOT include the cost of the investment, neither in the subsidiary nor in the associate.
It’s as simple as that!
What you need to be aware of is whether the cost of those investments has, or has not, been included within the figure for investments.
If it IS included, then you need to deduct it from that overall investment figure.
If it’s NOT included, that’s great.
Next time you have a question like this, post it on the Ask ACCA Tutor forum and I shall get back to you, probably within 24 hours
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