Accounting for associates
You'll learn how to account for associates using the equity method in consolidated financial statements. This video covers the key principles: why associates aren't line-by-line consolidated (because the parent doesn't control them), how to record the investment in associate on the statement of financial position, and
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In this lesson
- 0:00 Accounting for associates overview
- 0:12 Equity method explained
- 0:42 Basic principles of associate accounting
- 1:12 Recording associates in consolidated statement of financial position
- 2:34 Recording associates in consolidated profit and loss
- 3:28 Intercompany transactions and unrealised profit
- 5:01 Testing your knowledge on associates
About this lesson
how to show the group's share of associate profit in the consolidated statement of profit and loss. You'll also discover how to handle transactions between the group and associate, including adjustments for unrealised profit on a proportionate basis. This is essential knowledge for SBR and F2 papers, where consolidation accounting forms a significant part of the exam.
Duration: 6m
Transcript
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