Sir,
if there is an associate in an entity and if the group hasnt treated it as associate what would be the fs impact we would write for audit risk question
is it understated assets and profit ? or understated equity and profit
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Impact
7y ago#1It must affect all 3 - at each reporting date the movement in P's share of A's post-acquisition retained earnings affects profit - and the cumulative effects are reflected in the carrying amount of the investment and equity.
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