IAS 7Chapter 6Lesson 4
Investments accounted for using the equity method or at cost
Step 1 of 8Learning objectives
Go deeper+1 point of attention
For an investment accounted for using the equity method or at cost, the investor presents only the cash flows between itself and the investee: investments, dividends, advances. The share of profit is not a cash flow; dividends received are derived from the change in the carrying amount of the investment.
15 minNot started
Learning objectives
- Explain why only the cash flows between the investor and the investee appear in the statement.
- Calculate dividends received from an associate from the equity-accounted carrying amount and the share of profit.