associates in DFS

iainiow Registered Posts: 20 New contributor 🐸
Ive been out of the aat loop for a year and will be retaking DFS next week - im totally scared about associates in consolidation!!

ive read a few posts in these forums about associates, but i cant recall learning about them, or seeing them in any of the past papers i have been beavering away at frantically for the past 6 weeks!!

am i missing something big here that is going to land me in a whole lot of trouble in the exam??

also, has anyone got any tips on how to remember how to do consolidated income statements?? ive got consolidates balance sheets down to a fine art but can never remember how to do IS.

thanks guys


  • swirlywirly
    swirlywirly Registered Posts: 26 Regular contributor ⭐
    I've had the same sudden panic today over associates and consolidated income statements!

    Associates - don't consolidate, enter the investment at cost on the balance sheet. Any increase/decrease in value is adjusted accordingly.

    Consolidated income statements - cancel out any inter-company transactions (deduct from sales and purchases), deduct any unrealised profit from closing inventories and everything else is just added together. Remember to take into account any non-controlling interests percentage for the final profit figure.

    Hope that helps! That's the basics anyway. I found most of this just searching the forum so you can probably get any more in-depth info you require here too :)
Privacy Policy