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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 28
Investments in Associates
International Financial
Reporting Standards (IFRS) |
|
International Accounting
Standards (IAS) |
|
U.S. GAAP by Topic,
Securities Law Library,
U.S. Tax Code by Section |
| International Accounting Standard (IAS) 28 |
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IAS 28 Investments
in Associates Issued in
April 1989 Revised in
December 2003 Recent amendment:
by IFRS 3 revised in January 2008 |
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What is an
associate? --> an entity over which the investor has significant influence --> a subsidiary is not an associate --> an interest in a joint venture is not an associate |
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Significant influence --> 20% or more of the voting power --> owned directly or indirectly |
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In
general, equity method is used for an
investment in an associate. |
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Equity
method Initial recognition (1) investment is initially recognized at cost After the acquisition date, (2) change in the investor's share of the investee's net assets --> adjusts the carrying amount of investment (3) change in the investor's share of the investee's profit or loss --> is recognized in the investor's profit or loss (4) change in the investor's share of the investee's other comprehensive income --> is recognized in the investor's other comprehensive income (5) distributions received from an investee --> reduce the carrying amount of investment |
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IAS
28 Technical Notes |
