Dear CA - CWA Final Students,
Wohoo ....keeping my promise to 2nd day as i post next topic or rather Comment on Accounting standard 1 a day which can be beneficial to students.
The same posting will be also available in www.facebook.com/tejaslc and many more discussions in the coming days with respect to Income Tax, SFM
Accounting Standard 23 - Investment in Associates read with Interpretations 16
"Proposed dividend pending approval of General meeting is not a present obligation at the Balance Sheet Date"
further reading of the term "Liability is a Present obligation arising from past events ..
So In such cases - the investor's share of results of operations of associate should be computed without taking into
consideration Proposed Dividend in the Equity method
What is equity method - AS 23 ?
> Investment - Initial is recorded at Cost - Identify goodwill or capital reserve at time of acquisition
> carrying amount is adjusted for post acquisition change
> Consolidated Statement of Profit and Loss to reflect investors share of Net results of Operations
Advised to practice - Problems from CA Institute materials,Past question papers. do write to us at tejas @ tejas.co.in for any queries.
What is equity method - AS 23 ?
> Investment - Initial is recorded at Cost - Identify goodwill or capital reserve at time of acquisition
> carrying amount is adjusted for post acquisition change
> Consolidated Statement of Profit and Loss to reflect investors share of Net results of Operations
Advised to practice - Problems from CA Institute materials,Past question papers. do write to us at tejas @ tejas.co.in for any queries.
Regards,
Tejas learning centre
"Where knowledge is shared"
email : tejas @ tejas.co.in
Location : HSR layout, Bangalore.
CAclubindia
