FRS128 Investment in Associates pg2

Contents

INTRODUCTION		paragraphs IN1-IN15
Financial Reporting Standard 128 Investments in Associates

SCOPE		1
DEFINITIONS		2-12
Significant Influence		6-10
Equity Method		11-12
APPLICATION OF THE EQUITY METHOD		13-34
Impairment Losses		31-34
SEPARATE FINANCIAL STATEMENTS		35-36
DISCLOSURE		37-40
EFFECTIVE DATE		41
WITHDRAWAL OF OTHER PRONOUNCEMENTS		42-43

Style

Additions to IFRSs are clearly identified and would be made in a manner that preserves the format and structure of the IFRSs.

If a new paragraph is added, that paragraph would be labelled with the preceding paragraph number followed by a capitalised alphabet and the word "added" is included at the right side of the paragraph. If a paragraph is deleted, the text would be marked as deleted text by the inclusion of the word "deleted" at the right side of the paragraph and the reason for the deletion is explained at the end of the paragraph. [New paragraph or deleted paragraph without the indication of "added" or "deleted" at the right side of the paragraph is amendments made by the IASB.]

Additions or deletions made within the paragraph in IFRSs would be shaded and underlined or struck through respectively. [Those additions and deletions which are underlined or struck through without shading are amendments made by the IASB.]

Financial Reporting Standard 128 Investments in Associates (FRS 128) is set out in paragraphs 1-43. All the paragraphs have equal authority. FRS 128 should be read in the context of the Basis for Conclusions, the Foreword to Financial Reporting Standards and the Proposed Framework for the Preparation and Presentation of Financial Statements. FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.

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