Illustration
In this illustration, you'll learn how to account for associates within a consolidated group structure using equity accounting.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Understanding the group structure
- 0:26 Calculating investment in the associate
- 1:54 Computing share of associate profit
- 3:29 Determining group retained earnings
About this lesson
Working through a practical example with a parent company, subsidiary, and associate, you'll calculate three key figures: the investment in the associate for the statement of financial position, the group's share of the associate's profit for the statement of profit and loss, and the group's retained earnings. This is essential for Strategic Business Reporting (SBR) and builds your understanding of how associates are treated differently from subsidiaries in consolidated financial statements.
Duration: 5m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Financial Accounting course
All 105 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in