Equity method accounting for associates and joint ventures requires cost recognition, share of profit adjustments, and impairment testing. Mandates the equity method for investments in associates and joint ventures: initial recognition at cost, subsequent adjustment for investor's share of post acquisition profit or loss and other comprehensive income, with distributions reducing carrying amount. Goodwill is included in the investment carrying amount and not amortised; excess of share of net fair value over cost is recognised in equity as capital reserve. Long term interests that form part of the net investment are measured under Ind AS 109 before applying equity method loss allocation. Impairment of the net investment is tested as a single asset under Ind AS 36.
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Equity method accounting for associates and joint ventures requires cost recognition, share of profit adjustments, and impairment testing.
Mandates the equity method for investments in associates and joint ventures: initial recognition at cost, subsequent adjustment for investor's share of post acquisition profit or loss and other comprehensive income, with distributions reducing carrying amount. Goodwill is included in the investment carrying amount and not amortised; excess of share of net fair value over cost is recognised in equity as capital reserve. Long term interests that form part of the net investment are measured under Ind AS 109 before applying equity method loss allocation. Impairment of the net investment is tested as a single asset under Ind AS 36.
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