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Investment in Associate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Investment in Associate

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
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  • May 6, 2019 at 11:56 pm #515131
    gangsta1
    Member
    • Topics: 75
    • Replies: 10
    • ☆☆

    When preparing consolidated accounts, the equity method of accounting applies to the above investment.

    How is the investment in associate accounted for in the individual accounts of the investor? Does the same equity method applies?

    May 12, 2019 at 10:52 am #515677
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7217
    • ☆☆☆☆☆

    Hi,

    The investment is usually held in the parent’s books, and when it is it will be held under the equity method.

    Thanks

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