A Combined Disclosure Checklist for AS 23, Associate Accounting & AS 27, Accounting for Joint Venture
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- 2 Min Read
- By Taxmann
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- Last Updated on 21 August, 2023
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AS 23, Accounting for Investments in Associates in Consolidated Financial Statements, sets out principles and procedures for recognizing, in the consolidated financial statements, the effects of the investments in associates on the financial position and operating results of a group. And AS 27, Financial Reporting of Interests in Joint Ventures, sets out principles and procedures for accounting for interests in joint ventures and reporting joint venture assets, liabilities, income, and expenses in the financial statements of venturers and investors. This discussion involves the disclosure requirements of AS 23 and AS 27 to be made while preparing the two sets of financial statements.
I. Accounting Standard (AS) 23
a) Whether the entity has disclosed the reasons for not applying the equity method in accounting for investments in associates in the financial statements if an investment in an associate has not been accounted for in consolidated financial statements under the equity method where permitted under AS 23
b) Whether the entity has included the goodwill/capital reserve arising on the acquisition of an associate by an investor in the carrying amount of the investment in the associate.
c) Whether the entity has disclosed the goodwill/capital reserve arising on the acquisition of an associate by an investor separately.
II. Accounting Standard (AS) 27
a) Whether the venturer disclosed, in its separate financial statements, the aggregate amounts of assets, liabilities, income, and expenses pertaining to its interests in the jointly controlled entities.
b) Whether the venturer recognized and separately disclosed in the consolidated financial statements the difference between the cost (or other carrying amount, if different) of its interest in a jointly controlled entity and its share of the net assets of the jointly controlled entity at the date of acquisition as goodwill or capital reserve, depending on the circumstances?
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