Acf 455 accounting for associate

ACF 455

ACCOUNTING FOR ASSOCIATE

koappiah.ksb@knust.edu.gh

ARTICLE ON CONSOLIDATION PROCESS PART TWO

Statement of Financial Position as at 31 December, 2012

Statement of Financial Position as at 31 December, 2012

Statement of Financial Position as at 31 December, 2012

Statement of Financial Position as at 31 December, 2012

Article on Consolidation of Parent, Subsidiary and Associate

STEP 1: IDENTIFICATION OF GROUP STRUCTURE

STEP 2: CANCEL ALL INTRA-GROUP TRANSACTIONS AND BALANCES

KO: STEP 3: ADJUST FOR UNREALISED PROFITS

KO: STEP 4: ADJUST FOR FAIR VALUES OF ASSETS

STEP 5: SPLIT RESERVES AND STATED CAPITAL OF INVESTEES INTO PRE, POST-ACQUISITION AND BALANCE SHEET PERIODS

KO: STEP 6: CALCULATION OF GOODWILL

KO: STEP 7: COMPUTATION OF NCI