标题: Investment in Associates [打印本页] 作者: giorgio10 时间: 2013-4-17 18:20 标题: Investment in Associates
In the equity method of account for investment in associates, is the net income from the investment reported in the investor’s income statement above the line or below. I believe it is reported below the line and is gross of any tax since it is the portion of net income attributable to their % ownershipt and was already taxed. Please let me know if I am wrong.作者: slackeranalyst 时间: 2013-4-17 18:20
I don’t think it matters; you just need to show the line item explicitly and separately. Here’s what IAS 28.38 has to say about it:
Equity method investments must be classified as non-current assets. [IAS 28.38]
The investor’s share of the profit or loss of equity method investments, and the carrying amount of those investments, must be separately disclosed. [IAS 28.38]
The investor’s share of any discontinuing operations of such associates is also separately disclosed. [IAS 28.38]
The investor’s share of changes recognised directly in the associate’s other comprehensive income are also recognised in other comprehensive income by the investor, with disclosure in the statement of changes in equity as required by IAS 1 Presentation of Financial Statements. [IAS 28.39]
If I were doing it, I’d do a lil somethin like this:
EBT XXXX
taxes XXXX
NI Attributable 2 sholders XXXX
NI from investments in Associates XXXX
NI XXXX
but i think there’s some wiggle room there. I wouldn’t worry too much about the semantics of presentation though, it’s not that important.
The real meat and potatoes of this section will be knowing how things like CFO, NI, EBIT, Assets, Liabilities, Equity, various ratios, and so on will be affected under equity method vs consolidation (inlcuding full or partial goodwill considerations) vs proportionate consolidation, vs AFS/H2M/H4T作者: NakedPuts2011 时间: 2013-4-17 18:20
