Reconciliation to the carrying amount

Learning objectives

• Calculate the carrying amount of the interest from the summarised net assets, the share held and the adjustments (goodwill, fair value).L3
• Prepare the reconciliation between the summarised financial information and the carrying amount.L3

Normative references

• IFRS 12 §B14The summarised financial information in B12 and B13 shows the amounts included in the IFRS financial statements of the joint venture or associate, not the entity's share of those amounts; if the equity method is used, those amounts are adjusted to reflect the adjustments made in applying the method (fair value adjustments at acquisition, alignment of accounting policies), and a reconciliation of the summarised information to the carrying amount of the interest is provided. IFRS 18 amends this paragraph (C1E, applicable together with IFRS 18; future requirement).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Éole SA holds {investor_percent} of Zéphyr SA, a material associate accounted for using the equity method. Zéphyr's net assets in its summarised information: {summarised_net_assets}. The goodwill included in the carrying amount of the interest is {goodwill} and the other adjustments (fair value in particular) are {other_adjustments} (case data). Calculate the share of the summarised net assets, then the carrying amount of the interest to which the summarised information is reconciled.L3