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Hi Guys,
If you’re doing a consolidated IS and SOFP with an associate. Does the investment in associate line fo into both or just one?I know when its just a sofp it goes into NCA’s or when its an IS on its own it goes into the line before PBT.
But when you’re doing both does it still go into both?
Thanks,
Roisindo u mean, if the question states to prepare a consolidated sofp and a consolidated income statement, then do we show associate in both sofp and income statement? of cus u do why wudnt u. whatever goes to the sofp is shown, whatever is goes to the income statement is shown as well.
In the SOFP you should put investment under NCA, and in statement of profit or loss you should put share of the profits from associate.
When you are doing both statements, you should put lines in both statements. They are different on nature, you can’t show associate only in one statement. Your balance won’t balance (if in Assets you increase amount of association (Dr Asset), you should credit something in Equity&Liabilities! (e.g. Cr Retained earnings)).
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