IAS-28 – Investments in Associates

An associate is an entity, including an unincorporated entity such as partnership, over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture. An investment in an associate shall be accounted for using the equity method with specified exceptions. An investor shall discontinue the use of equity method from the date that it ceases to have significant influence over an associate. The investor in applying equity method uses the most recent available financial statements of the associate. When the reporting dates of the investor and the associate are different, the associates prepares, for the use of the
investor, financial statements as of the same date as the financial statements of the investor. The investor’s financial statements shall be prepared using uniform accounting policies for like transactions and events in similar circumstances.