IAS 28Chapter 3Lesson 3
Adjusting the share: fair value, uniform policies and reporting dates
Step 1 of 6Learning objectives
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The share of the associate's profit is adjusted for the additional depreciation linked to the acquisition fair values, for differences in accounting policies with the investor and for significant events between two reporting dates.
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Learning objectives
- Calculate the adjustment to the share of profit for additional depreciation based on the fair value excess.
- Explain that the associate's statements are restated to the investor's policies before the equity method is applied.
- Apply the reporting date rule and the adjustment for significant events.