Share of profit of Associate in consolidated SPL

This topic has 3 replies, 2 voices, and was last updated 7 years ago by P2-D2.

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February 22, 2019 at 10:28 am #506173
lavenite
Member
- Topics: 13
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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
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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: 7235
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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