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Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015 by Steven Collings

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Chapter 23Investments in Associates and Joint Ventures

  1. Introduction
  2. Identifying an Investment in an Associate
  3. Significant Influence
  4. Initial Measurement and Equity Accounting
  5. Joint Ventures: Definitions and Classifications
  6. Joint Ventures: Other Issues
  7. Disclosure Requirements

Introduction

The issue relating to associates and joint ventures is twofold. First, FRS 102 deals with the issue of accounting for investments in associates at both separate and consolidated financial statements levels in Section 14 Investments in Associates. Second, joint ventures are also dealt with separately in Section 15 Investments in Joint Ventures and this Section also covers the issue of accounting for an entity's investments in joint ventures at both separate and consolidated financial statements levels. This chapter combines the two for ease of reference and looks at the accounting for investments in associates in the first half of the chapter with the latter half of the chapter dealing with joint ventures.

The scope of Section 14 is fairly short and deals with the accounting for investments in associates in both the consolidated financial statements and how an entity should account for its investments in associated undertakings in its own individual financial statements when the reporting entity is not a parent (i.e. when the entity does not have any subsidiaries). With regards to investments in associates in the individual financial statements of a parent company, such issues are dealt with ...

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