Document 1Memo
Group profile and case conventions
Merlane Group SA (fictitious entity), a listed company, closes its accounts on 31 December 20X6 and accounts for its associates under the equity method. Case conventions: amounts in EUR; fair values are those of independent valuations (case data); case convention (pedagogical assumption, not attributed to IAS 28): additional depreciation, policy and event adjustments are case data; the associate’s adjusted profit is computed by hand, no multi-line schedule being modelled; lives are case data; the annual additional depreciation is taken over 12 months for simplicity, even where the statements used end before the year-end; the entries are illustrative.