Equity method accounting required for associates in consolidated financial statements, with specified exceptions and disclosure obligations. Investments in associates in consolidated financial statements are accounted for under the equity method: initially recorded at cost with goodwill or capital reserve identified, then adjusted for the investor's share of post-acquisition profits or losses; distributions reduce carrying amount. The equity method is required except when investments are held for near-term disposal or when associates face severe long-term restrictions; reasons must be disclosed. Significant influence (distinct from control) is evidenced by board representation, policy participation, material transactions or managerial interchange. Differences in reporting dates or accounting policies require adjustments or disclosure, and the investor discontinues the equity method if significant influence is lost.