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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › non-cash consideration for stake in associate
” When an investor contributes assets in exchange for an equity interest in the
associate, the investor recognises the portion of the gain or loss on disposal
attributable to the other investors in the associate (i.e. if the investor owns
40% of the associate, it recognises 60% of the gain or loss).”
sir can you tell me the journal entry of this?? so that i can understand where the effects can be seen.
many thanks!
Dr Investment in associate
Cr PPE (for example)
Cr P&L (if it’s a profit)