associate companies

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi everyone, hope you all feel better than I do<BR><BR>I don't think I have done well, managed everything except the associate companies. We have been through them in college but we never had any practice papers on them. Had a complete blank and didn't write a thing!<BR><BR>Anybody else in the same boat?<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    associate companies

    We hadn't done anything on them either and having checked when i got home , i did it wrong cos i just guessed what to do! but it's only a small part of the overall section so if that's the only thing you did wrong then u r gonna pass.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    associate companies

    thanks for the vote of confidence Dawn - I hope you are right<BR><BR>Good luck with your results<BR><BR>mitch
  • System
    System Posts: 100,534 🤖 Admin 🤖
    associate companies

    I actually put a note in my text book when we were studying this in class that reads "Broad knowledge". Even the AAT guidance on page: http://www.aat.co.uk/docs/centres/guidance/Tech - Unit 11 DFS guidance.pdf&lt;BR&gt;says FRS9 will be tested to "an understanding of the definition of associates" so I hardly looked at this.<BR><BR>I certainly don't remember covering the application of this in class but here's what I did:<BR><BR>Share capital £??? (can't remember the figure now) +<BR>Profit and Loss £8,000,000 (1,000,000 post acquisition profits deducted from P&L bal)<BR>* 25%<BR>= amount of investment in CBS<BR><BR>Anyone else do this?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    associate companies

    Um. No.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    associate companies

    I created the same table as in the first part of the qustion, you know, with Equity, P&L at acq and P&L after Acq Minority Interess at the end.....<BR><BR>Basically i worked out the minority interest of the associate and called this the associate interest for the larger company. i think that is right but cant remember the tru figure. remembered it began aith a 5 though.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    associate companies

    cheekyface - i sort of did this too but think the only figures that would have had the "minority interests" of 25% would have been the profit and loss at acquisition and the share capital. Hopefully it's enough<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    associate companies

    Investment in associate is:<BR><BR>Relevant percentage of Associates net assets plus any unamortised goodwill<BR><BR>David

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