Investment in associates

Yes - we're looking for the CASH received from the associate by way of dividend received. Working W5A in consolidated statements of financial position is the working for the investment in associates. This is calculated as: Cost + Share of post acq RETAINED - Any impairment Now we can adapt that for the sake of ease into: Balance brought forward + Share of this year's profit after tax - Any impairment this year = Balance carried forward Well, we know the brought forward - it's on last year's SoFP and we know the carried forward - it's on this year's SoFP (Ignore any impairment for this exercise) So the difference between the two should be our share of this year's profit after tax and we know the associate's profit after tax because that information will be given to us If our share of that profit after tax is not the same as the difference between the brought forward and the carried forward, then we MUST have received a dividend. There's an example of this in the cash flow chapter in the free course notes!

Thanks Mike. This is the information from the question Opening balance 72 (per SFP) Share of profit in associates 73 (no tax provided) (P&L) Dividend received 61 (notes) Closing balance 96 (per SFP) Can I assume that the difference of 12 (balancing figure) as an investment in associates?

"Opening balance 72 (per SFP) Share of profit in associates 73 (no tax provided) (P&L) Dividend received 61 (notes) Closing balance 96 (per SFP)" - the opening and closing balances information is from the parent's statement of financial position? And the share of this year's after tax associate profits is 73? And the notes say that the parent received a dividend of 61 from the associate? Then the missing figure looks to me like an associate gain through other comprehensive income!

Opening and closing balance as per parents SFP Share on profit as per P&L 73 not too sure it's after tax or not. There is no information regarding tax. So if it is associates gain, it will be under investing operations in cash flows?

NO!!! The only figure in the cash flow will be "Investment income from associate $61 (from above)"