International Accounting Standard 28, Investments in Associates, IFRS

International Accounting Standards (IAS)
International Financial Reporting Standards (IFRS)

U.S. GAAP

IFRS, IAS

Accounting Topics

International Accounting Standard (IAS) 28
Investments in Associates

International Financial Reporting Standards (IFRS)

International Accounting Standards (IAS)

U.S. GAAP by Topic

International Accounting Standard (IAS) 28

IAS 28

Investments in Associates

Issued in April 1989

Revised in December 2003

Recent amendment: by IFRS 3 revised in January 2008

What is an associate?
      --> an entity over which the investor has significant influence
      --> a subsidiary is not an associate
      --> an interest in a joint venture is not an associate

Significant influence
--> 20% or more of the voting power
--> owned directly or indirectly

In general, equity method is used for an investment in an associate.

Equity method

      Initial recognition
      (1) investment is initially recognized at cost

      After the acquisition date,
      (2) change in the investor's share of
                  the investee's net assets
            --> adjusts the carrying amount of investment

      (3) change in the investor's share of
                  the investee's profit or loss
            --> is recognized in the investor's profit or loss

      (4) change in the investor's share of
                  the investee's other comprehensive income
            --> is recognized in the investor's other comprehensive income

      (5) distributions received from an investee
            --> reduce the carrying amount of investment

U.S. GAAP by Topic

Accounting Topics

Inventory Valuation Methods

Depreciation Methods

Revenue Recognition Principle

Accrual Basis vs. Cash Basis Accounting

Basics of Journal Entries

Ratios for Financial Statement Analysis

Overview of Financial Statements

	Wiley IFRS 2008: Interpretation and Application of International Accounting and Financial Reporting Standards 2008 by Barry J. Epstein and Eva K. Jermakowicz (Paperback - Mar 28, 2008) Paperback Edition Book & CD-Rom Edition
	Wiley GAAP 2008: Interpretation and Application of Generally Accepted Accounting Principles 2008 Paperback Edition Book & CD-Rom Edition
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