I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 EXAM FOCUS POINT 

The FFA/FA syllabus requires you to understand the principle of equity accounting, but you will not be 

expected to perform calculations using equity accounting techniques in your exam. 

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CHAPTER 23  

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  INTRODUCTION TO CONSOLIDATED FINANCIAL STATEMENTS 

 

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in another way that Smith Co does have significant influence over Yellow Co, Yellow Co would be 

classified as an associate.  

Aquamarine Co is an associate of Smith Co, as Smith Co holds more than 20% of the voting rights of 

Aquamarine Co and is therefore presumed to have significant influence over Aquamarine Co.