B407 Week 9 (student)

B407 Week 9 (student) - HKAS28 (2011) Investments in...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1 HKAS28 (2011) Investments in associates and joint arrangements Associate company An entity over which the investor has significant influence and which is neither a subsidiary nor an interest in a joint venture >20% <50% Create PDF files without this message by purchasing novaPDF printer ( http://www.novapdf.com )
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Significant influence The power to participate in the financial and operating policy decisions of the investee but not control over those policies. Significant influence does not need to be actually exercised; and the real test is whether the investor possesses such power to exercise if he wants to. 20% cut off If an investor holds, directly or indirectly 20% or more of the voting power of the investee, it is presumed that the investor has significant influence, unless it can be clearly demonstrated that this is not the case Create PDF files without this message by purchasing novaPDF printer ( http://www.novapdf.com )
Background image of page 2
3 Significance influence evidenced by: • Representation on the board of directors. • Participation in the financial and operating policy making processes • Material transactions between the investor and the investee. • Interchange of managerial personnel. • Provision for essential technical information A B 12% 75% D C 15% 60% Create PDF files without this message by purchasing novaPDF printer ( http://www.novapdf.com )
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 A B 15% 40% D C
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/24/2012 for the course ACT 407 taught by Professor Mshui during the Fall '11 term at The Open University.

Page1 / 9

B407 Week 9 (student) - HKAS28 (2011) Investments in...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online