Exam 29: Associates and Joint Ventures

The following information relates to questions 22 to 24 On 1 July 2013 Joey Ltd acquired 25% of the shares of Leo Ltd for $100 000. At that date the equity of Leo Ltd was $400 000, with all identifiable assets and liabilities being measured at fair value. Profits/(losses) made since the date of acquisition are as follows: There have been no dividends paid or movements in reserves since the date of acquisition. -At 30 June 20X5 the equity accounted balance of the investment in Leo was:

Where an investor has discontinued the use of the equity method because the associate has incurred losses it must disclose the:

Investor Limited acquired a 30% interest in Investee Limited for $27 000. Investor holds other equity investments but does not prepare consolidated financial statements. Investee Limited revalued its buildings class of assets by $10 000 during the current financial period. The balance of the investment in associate account at the end of the current financial period is:

The following are regarded as factors indicating the existence of significant influence over another entity:

The following information relates to questions 15 and 16 Nero Ltd purchased a 30% per cent shareholding in Bianco Ltd on 1 January 20X8 for $180,000. Bianco Ltd's assets recorded at fair values and its owners' equity, totalling $520,000, was represented as follows: During July 20X8, Bianco Ltd paid an interim dividend of $18,000. At 31 December 20X8, Bianco Ltd reported: -Where an investor sells inventory to an associate and the inventory is still on hand at the end of the year the investor's share of the associate's profits is:

When disclosing information about investments in associates, IAS 28 Investments in Associates and Joint Ventures, requires separate disclosure of which of the following? I Shares in associates, in the statement of financial position. II Share of profit or loss of associates, in the statement of profit or loss and other comprehensive income. III Share of any discontinuing operations, in the statement of changes in equity. IV Shares of changes recognised directly in the associate's equity, in the statement of changes in equity.