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
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
0
Comments
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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 too0
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