Accounting for Associate

As we know as per AS-23 accouting for investment is done on equity method and everything is routed through investment.

Now suppose i have an associate in which investment is Rs. 5 lacs. I deal with the associate i supply goods to subsidiary. Now at the year end in associates stock there is some portion which i have sold to it and unrealised profit on stock is Rs.10 lacs.

Now, hw should i knock off this...what shud b d treatment here as investment is less unrealised profit is more?

Pls share ur valuable comments.....

Replies (3)

yes

Because in equity method we show the cost+revenue profits from out siders only

We can not disclose the profits from ours in one side and liability another side

(this is my understanding only

Eg:         Liabilities                                  Assets

 

              Payable                                     Investment

What r u tryin to say.. plz answer above query...

All AS at one place  

https://www.caclubindia.com/forum/all-as-at-one-place-87927.asp  

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