Accounting for investments in associates.

Aravind.. (CA) (1262 Points)

11 September 2011  

Good morning,

The company regarding which i have doubt is a private limited company. It has thirty percent shareholding in another private ltd company and thirty eight percent holding in a public limited company. All three companies prepare separate financial statements. So will the standard on associates get applied in this case? Should the profit or loss in the associates be accounted in the investor?
Please clarify me in this regard.
Thanks in advance.