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Share of profit of Associate in consolidated SPL

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Share of profit of Associate in consolidated SPL

Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 22, 2019 at 10:28 am #506173
    lavenite
    Member
    • Topics: 13
    • Replies: 5
    • ☆

    Hi,

    I would like to ask if, from the ‘Share of profit of Associate’ in consolidated SPL, do we deduct the unrealised profit between Associate and Investor as well?

    Thank you

    February 25, 2019 at 9:45 pm #506516
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7149
    • ☆☆☆☆☆

    Hi,

    The deduction depends on the direction of the sale. If the associate has made the sale, then we would deduct the share of unrealised profit.

    Thanks

    February 26, 2019 at 8:33 am #506566
    lavenite
    Member
    • Topics: 13
    • Replies: 5
    • ☆

    Hi,

    Thanks for the earlier response.

    So to summarise:

    In the SPL, we would deduct share of unrealised profit from ‘Share of profit of Associate’ only if the associate made the sale.

    whereas

    In SFP, we deduct the share of unrealised profit from ‘Investment in Associate’, regardless of the direction of the sale?

    February 28, 2019 at 8:18 pm #506887
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7149
    • ☆☆☆☆☆

    Hi,

    Sounds about right. It is all very confusing,so just focus getting the numbers right first and then worry about the complexities of the direction of sale.

    Thanks

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