1 ACCT4104 Advanced Financial Accounting Dr. Winnie S.C.

Leung

Overview of relevant accounting standards

Level of equity investment Criteria Required treatment in group

accounts

Subsidiary Control Acquisition accounting (full consolidation)

 IFRS 3 Business Combinations

 IFRS 10 Consolidated Financial
Statements

Associate Significant influence Equity accounting

 IAS 28 Investments in Associates and

Joint Ventures

Joint venture Contractual arrangement Equity accounting

 IAS 28 Investments in Associates and

Joint Ventures
 IFRS 11 Joint Arrangements

Investment which is none Asset held for accretion IFRS 9 Financial Instruments
above of wealth

Other relevant standards:

o IFRS 12 Disclosure of Interests in Other Entities

o IAS 27 Separate Financial Statements

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