Consolidated Accounts for associates

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Do we need to know about the associated company and prepare p & l and Balance sheet. any thoughts appreciated<BR><BR>ARJUN

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    Not entirely sure although the guidance notes on AAT website says 'Typical tasks in the first section might include... calculate the amount at which an interest in an associate is to be included in consolidated financial statements'
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    how prepared are you for this
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    We were told that FRS9 Associates and Joint Ventures would not be tested in the same way as FRS6 Acquisitions & Mergers. There is a difference in accounting techniques - acquisition/equity (?) but I understand that associates will only be tested at a simple level, not the full financial statements.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    am working my way down the list from the FTC company. Not got to this one yet. Any ideas how to tackle it? save me doing it later as well as everything else.<BR><BR>i think an associate is between 20% and 50% but that's all i can remember at the mo.<BR><BR>What do you reckon?<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    i think you're right birds<BR>not planning on going to learn heaps of it but just a bit to mention something more than i know at the mo
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    thats all it is.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Consolidated Accounts for associates

    That's how I understand it - been speaking with a friend about this and I think anything below 20% is classed as a trade investment. We may be asked on the basic differences between an associate and a subsidiary - acquirerer/acquired/managed on a unified basis/genuine pooling of resources and like for like share capital. Will need to look at it later - head fit to burst at the moment.<BR><BR>

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