Investment less than 20% in other entity

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Sarb
Posts: 11
Joined: 27 Jan 2022, 10:34

Investment less than 20% in other entity

Post by Sarb »

Hi All,
Please help me with accounting treatment for investments in other entities, Entity A has invested with ownership of 19% in entity B, 10% in entity C. It is not a significant influence (20-50%) as the ownership is less than 20% and equity method cannot be applied in this case.
1. So how can I treat these items in the financial statements.
2. what if entity B and C pay dividends to entity A and how this can be booked under IFRS ? .

Thanks for help in advance.
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Investment less than 20% in other entity

Post by Leo »

As Equity instruments under IFRS9, FVTPL or OCI (under option).

Dividends should be recorded in P&L
JRSB
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Joined: 01 Mar 2020, 01:10
Location: UK

Re: Investment less than 20% in other entity

Post by JRSB »

maybe it is significant influence even though you have 19%, so you have a seat on the board, , or other influential factor?
Sarb
Posts: 11
Joined: 27 Jan 2022, 10:34

Re: Investment less than 20% in other entity

Post by Sarb »

I have already assessed, it is not a significant influence.
JRSB
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Re: Investment less than 20% in other entity

Post by JRSB »

as per Leo then, probably depending on what you're planning to do with it
JRSB
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Re: Investment less than 20% in other entity

Post by JRSB »

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