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Commentary on the Adjustments Required for Intercompany Transactions when Equity Accounting Under IAS 28
Author(s) -
Bradbury Michael E.
Publication year - 2018
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/auar.12180
Subject(s) - accounting , equity (law) , business , joint venture , business administration , political science , law
The IASB has several projects on the equity method of accounting that involve the transfer of assets between an investor and its associate or joint venture. This paper provides a commentary on this issue by providing examples of alternative methods of adjusting for inter‐company profits. The underlying concepts for alternative approaches are discussed. The conclusion outlines the steps the IASB needs to take to resolve this issue.