April 2006
In this newsletter, we look at the following topic:
Equity Accounting: Practical Difficulties
The equity method of accounting has been around for many years. It is thought to be straightforward and well understood. Equity accounting has received little attention from standard-setters in recent years, despite criticism of it by some as a concept. HKAS 28, Investments in Associates, was part of the improvement project when various changes pushed equity accounting closer to accounting for business combinations and subsidiary accounting by making certain implied requirements explicit and removing some impracticability exceptions. However, problems and inconsistencies are still arising in application. This article examines some of the practical issues that have arisen and some areas of inconsistency in the accounting literature.
Read more by downloading the pdf file below.
Note: HKFRS has converged with IFRS effective from 1 January 2005. Contents contained in this newsletter are also relevant to IFRS preparers.
Find Out More
If you would like to have more information on the above, please contact Gladys Lau, +852 2289 2976, email me.
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Download our HKFRS News - April 2006 (pdf file, 208KB) for your reference.
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