According to IAS 28 gains and losses resulting from downstream transactions involving assets are recognized in the investor's financial statements only to the extent of unrelated investors' interests in associates. The standard mentions only transactions involving assets that do or do not constitute business however it does not mention transactions involving services, i.e are the revenues realized from providing service downstream treated same as transactions involving assets? Are they also eliminated or not?
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IAS 28 Investment in associates and joint ventures
Re: IAS 28 Investment in associates and joint ventures
No, such transactions are not eliminated. Even for downstream transactions you recognise full revenue once the asset subject to this transaction is disposed of by the associate. See this section:
https://ifrscommunity.com/knowledge-bas ... t-ventures
https://ifrscommunity.com/knowledge-bas ... t-ventures
Re: IAS 28 Investment in associates and joint ventures
Marek
Thank you very much! This was very helpful.
Thank you
Best regards
Thank you very much! This was very helpful.
Thank you
Best regards