Equity and Cost Method

This topic has 5 replies, 2 voices, and was last updated 9 years ago by MikeLittle.

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September 21, 2016 at 10:53 pm #341281
coop
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Sir,
I ask about, which method is used, equity or cost? for both the investment in subsidiary (consolidation) and associate (no consolidation) ?
Thanks
September 22, 2016 at 1:46 am #341287
MikeLittle
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Cost for the Subsidiary and equity for the Associate

Surely this is all in the course notes and in the videos
September 22, 2016 at 5:54 pm #341397
coop
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But is it possible to use any of both at the subsidiary case ? as long as there is consolidated statements .
September 22, 2016 at 11:48 pm #341416
MikeLittle
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NO!

In the case of the subsidiary we HAVE to use the profits as at date of acquisition

Is that ok for you?
September 23, 2016 at 4:49 pm #341479
coop
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It is meant that we have to use only the cost method, at the subsidiary case ?
September 23, 2016 at 5:40 pm #341487
MikeLittle
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Yes, IFRS 3 talks about an acquirer and an acquiree and cost method is the one to be applied
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