Consolidated SFP with Associates

emmap2
emmap2 Registered Posts: 16 Dedicated contributor ? ? ?
My tutor has just given me questions to practice on Consolidated SFP with a subsidiary and an associate, i find it really complicated and now I am panicking.
Is this likely to come up as I've not really seen it in previous papers?

Comments

  • Tinkerbell007
    Tinkerbell007 Registered Posts: 64 ? ? ?
    I haven't seen this on any past paper either - stressing now!!!!
  • Primble
    Primble Registered Posts: 734
    I haven't seen this on any past paper either - stressing now!!!!

    look at june 09
  • noodles
    noodles Registered Posts: 308
    can you email me the questions please
  • emmap2
    emmap2 Registered Posts: 16 Dedicated contributor ? ? ?
    nscuffell wrote: »
    can you email me the questions please
    What question in June 09 includes Associates, sorry I can't find it.
  • Primble
    Primble Registered Posts: 734
    emmap2 wrote: »
    What question in June 09 includes Associates, sorry I can't find it.

    i may be wrong but aren't associates nd subsidiary treated in a similar way/
  • taskey
    taskey Registered Posts: 1,800
    Primble wrote: »
    i may be wrong but aren't associates nd subsidiary treated in a similar way/

    i have just looked at june 09 and it is the layout etc as all others, it is only the wording associates/subsidary which is different.

    do the question like you know how and see if you come up with the same answers

    Tracy
  • val0123
    val0123 Registered Posts: 42 ? ? ?
    I think that if there is an associate then you need to work out the goodwill on acquisition and share of net assets. The total of the two is added in non-current assets section of the statement of financial position as 'investment in associate'. The retained earnings figure in the equity section will include the post-acquisition share of retained earnings from the associate. None of the figures for sales etc are added together.

    I think for consolidated income statements with an associate you need to add the 'share of profits of the associate' into the income statement of the Parent after profit after tax. This is calculated by calculating the profit of the associate earned during the year as a % of the holding.

    A bit iffy on these so the above is def not gospel !
  • jewels.p
    jewels.p Registered Posts: 1,774
    If an associate is involved work out the Group Share of the Associates Net Assets at SOFP date and work out the Goodwill then add the two together and this is entered on the SOFP under Investment in Associates. That is the only working I think we would need to do.

    Never seen anything on an Associate in Income Statements so wouldnt have a clue if we got asked to do that. I wouldnt be happy either if we do get asked as I have never had any notes or books that say anything about it.
  • Urszula
    Urszula Registered Posts: 14 Regular contributor ⭐ ? ⭐
    Hi,

    In the SOFP with assosiates, you only have to include "Investment in Assosiate" under Non current assets and then "Retained Earnings" under Equity.

    What you have to do, you have to calculate 4 first workings like for subsidiary, and then calculated goodwill and NCI has to be added together. It will give you "investment in assosiate".

    As regards "Retained earnings", once you have calculated 5 workings for subisdiary, the last 5th working you have to adjust by % from calculated retained earnings of assosiate- this needs to be added back and calculated goodwill for assosiate has to be deducted. And all work done.

    Sorry if didnt explain it in more details.
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