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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Investment in associate
Hi sir, when calculating the ‘investment in associate’ figure in the statement of financial position it doesn’t matter whether the associate sells to the parent or the parent sells to the associate right ? Either way, the group’s share of the unrealised profit (PURP) will still be deducted from the ‘investment in associate’ right sir ?
Correct – if you follow my notes and lectures you’ll see the ‘easy’ way of computing the figures necessary where there is an associate involved