UK GAAP 2019

Chapter 12Investments in associates

• 1 INTRODUCTION
• 2 COMPARISON BETWEEN SECTION 14 AND IFRS
  • 2.1 Measurement – individual and separate entity financial statements
  • 2.2 Investment portfolios / funds
  • 2.3 Accounting for the acquisition of an associate
  • 2.4 Loss of significant influence
  • 2.5 Transactions to create an associate
  • 2.6 Long term interests in associates
• 3 REQUIREMENTS OF SECTION 14 FOR INVESTMENTS IN ASSOCIATES
  • 3.1 Introduction
    • 3.1.1 Scope
    • 3.1.2 Terms used in Section 14
  • 3.2 Definitions of an associate, and related terms
    • 3.2.1 Associate
    • 3.2.2 Significant influence
      • 3.2.2.A Lack of significant influence
      • 3.2.2.B Holdings of less than 20% of the voting power
      • 3.2.2.C Voting rights in UK company law
      • 3.2.2.D Potential voting rights
      • 3.2.2.E Voting rights held in a fiduciary capacity
  • 3.3 Measurement
    • 3.3.1 Accounting policy options
      • 3.3.1.A Investor not a parent
      • 3.3.1.B Investor that is a parent
    • 3.3.2 Equity method
      • 3.3.2.A Date of commencement of equity accounting
      • 3.3.2.B Distributions and other adjustments to carrying amount
      • 3.3.2.C Potential voting rights and share of the investee
      • 3.3.2.D Implicit goodwill and fair value adjustments
      • 3.3.2.E Impairment
      • 3.3.2.F Investor's transactions with associates
      • 3.3.2.G Date of associate's financial statements
      • 3.3.2.H Associate's accounting policies
      • 3.3.2.I Losses in excess of investment
      • 3.3.2.J Discontinuing the equity method
      • 3.3.2.K Transactions to create an associate
    • 3.3.3 Cost model
    • 3.3.4 Fair value model
  • 3.4 Presentation and ...