There are three accounting standards for investments – AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, and AASB 128 Investments in Associates and Joint Ventures. Then there is accounting under AASB 127 AASB Separate Financial Statements, which might come into play when accounting for investments. Let’s not forget some investments fall within AASB 9 Financial Instruments.
Accounting for each of them varies and can confuse. So let’s go back to basics.
This session will
- Explain the key terms and concepts such as control, joint control and significant influence non-controlling interest, joint arrangement, and associate
- Describe the fundamental accounting rules for each type of investment, and
- Explain how to account for investments in separate financial statements.