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

 

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Notice the difference between this treatment and the consolidation of a subsidiary company's results. If  

A Co were a 100% owned subsidiary, P Co would take credit for the whole of its sales revenue, cost of 

sales etc.  

Under equity accounting, the associate's sales revenue, cost of sales and so on are 

not amalgamated 

with those of the group. Instead, only the group share of the associate's profit after tax is added to the 

group profit. 

3.2.2 Other comprehensive income 

The 'other comprehensive income' element of consolidated financial statements is not part of the FFA/FA 

syllabus. 

3.2.3 Consolidated statement of financial position 

A figure for investment in associates is shown in the consolidated statement of financial position which 

must be stated at cost at the time of the acquisition of the associate. This amount will increase (or 

decrease) each year by the amount of the group's share of the associated company's increase (or