CSFP/PL for associates

Question 1

How do you present associate in CSFP

Answer 1

Add a line under NCA as NCA investment

Question 2

How do you calc net assets of associate

Answer 2

RE at acq - RE at reporting

Then split between group and NCI

Question 3

How does associate impact W5 and W6

Answer 3

Add line for P% of RE movement and remove associate impairments

for W6 add line for P% of A’s movement in reserves (i.e retained earning)

Question 4

What is W7?

Answer 4

Investment in associate

Original cost of investment
P% of A movement in NA
- Impairment losses
- P% of FV depreciation (if FV uplift)

Question 5

How do you present associate in CSPL

Answer 5

Above PBT add line for share of profit of associate

If P owned 30% this is workings:

30% x associate pfy -30% A’s CY FV dep - CY impairment

Question 6

How do you treat intragroup trading for associates? What about inventory PURP

Answer 6

Include as group does not have control- no need to remove

Calc PURP as usual but multiply by P% of ownership

If P sells to A

CSFP: Dr Group RE and Cr Investment in associate (reduce)
CSPL: Add back P% of PURP to COS

If A sells to P

CSFP: Dr Group RE and Cr Group Inventory (reduce)
CSPL: Remove P% of PURP from share of profit of associate line