An investment in an associate is accounted for under the equity method from the date
An investment in an associate is accounted for under the equity method from the date on which it falls within the definition of an associate.
On acquisition of the investment any difference (whether positive or negative) between the cost of acquisition and the investor’s share of the fair values of the net identifiable assets of the associate is accounted for in accordance with Accounting Standard, “Business Combinations”.
Appropriate adjustments to the investor’s share of the profits or losses after acquisition are made to account for:
(a) depreciation of the depreciable assets, based on their fair values; and
(b) amortisation of the difference between the cost of the investment and the investor’s share of the fair values of the net identifiable assets.
13. Financial statements of the associate used by the investor in applying the equity method must be drawn up to the same date as that of the financial statements of the investor. When it is impracticable to do this, financial statements drawn up to a different reporting date may be used.
14. When financial statements with a different reporting date are used, adjustments are made for the effects of any significant events or transactions between the investor and the associate that occur between the date of the associate’s financial statements and the date of the investor’s financial statements.
15. The investor’s financial statements are prepared using uniform accounting policies for like transactions and events in similar circumstances.
If an associate uses accounting policies other than those adopted by the investor for like transactions and events in similar circumstances, appropriate adjustments are made to the associate’s financial statements when they are used by the investor in applying the equity method. If it is not practicable for such adjustments to be calculated, that fact should be disclosed.
16. If an associate has outstanding cumulative preferred shares held by outside interest, the investor computes its share of profits or losses after adjusting for the preferred dividends, whether or not the dividends have been declared.
17. If, under the equity method, an investor’s share of losses of an associate equals or exceeds the carrying amount of an investment, the investor ordinarily discontinues including its share of further losses in its consolidated financial statements, except when the investor has obligations to pay on behalf of the associate to satisfy obligations of the associate that the investor has guaranteed or otherwise committed.
The investment is then reported at nil (0) value. If the associate subsequently reports profits, the investor resumes including its share of those profits only after its share of the profits equals the share of net losses not recognised.
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GIẤY PHÉP THÀNH LẬP VĂN PHÒNG ĐẠI DIỆN (TT)
The duration of authorization of each representative, including the beginning date;
Responsibilities of the enterprise’s legal representative
Reporting changes to information about the enterprise’s manager
Criteria, rights and obligations of social enterprises
Do accounting, make and submit truthful financial statements in a timely manner according to regulations of law on accounting and statistics.
State assurance about enterprises and owners of enterprises
Subsidiaries are related person of the parent company in the same group
Application of the Law on Enterprises and specialized laws
Acceptance of leased goods