PPT: Accounting Standards (23) | Advanced Accounting for CA Intermediate PDF Download

 Page 1


Accounting Standard 23
Accounting for Investments in
Associates in Consolidated
Financial Statements
Page 2


Accounting Standard 23
Accounting for Investments in
Associates in Consolidated
Financial Statements
Objective
• to set out principles and procedures for 
recognizing, in the consolidated financial 
statements, the effects of the investments in 
associates on the financial position and 
operating results of a group.
Page 3


Accounting Standard 23
Accounting for Investments in
Associates in Consolidated
Financial Statements
Objective
• to set out principles and procedures for 
recognizing, in the consolidated financial 
statements, the effects of the investments in 
associates on the financial position and 
operating results of a group.
Scope
1. This Standard should be applied in 
accounting for investments in associates in 
the preparation and presentation of 
consolidated financial statements by an 
investor.
2. This Standard does not deal with accounting 
for investments in associates in the 
preparation and presentation of separate 
financial statements by an investor.
Page 4


Accounting Standard 23
Accounting for Investments in
Associates in Consolidated
Financial Statements
Objective
• to set out principles and procedures for 
recognizing, in the consolidated financial 
statements, the effects of the investments in 
associates on the financial position and 
operating results of a group.
Scope
1. This Standard should be applied in 
accounting for investments in associates in 
the preparation and presentation of 
consolidated financial statements by an 
investor.
2. This Standard does not deal with accounting 
for investments in associates in the 
preparation and presentation of separate 
financial statements by an investor.
Overview
• very helpful to corporate type investors
• simple rule is that investor must record all 
investment in associates
• Associates - if an investor invests his fund‘s 
20% or more in any other company
Page 5


Accounting Standard 23
Accounting for Investments in
Associates in Consolidated
Financial Statements
Objective
• to set out principles and procedures for 
recognizing, in the consolidated financial 
statements, the effects of the investments in 
associates on the financial position and 
operating results of a group.
Scope
1. This Standard should be applied in 
accounting for investments in associates in 
the preparation and presentation of 
consolidated financial statements by an 
investor.
2. This Standard does not deal with accounting 
for investments in associates in the 
preparation and presentation of separate 
financial statements by an investor.
Overview
• very helpful to corporate type investors
• simple rule is that investor must record all 
investment in associates
• Associates - if an investor invests his fund‘s 
20% or more in any other company
Methods To Record
1. Equity Method
1. Non-Equity Method