Advanced
Equity Method: Recording Share of Associate Profit
Recording the company's share of net income from an associate company (20-50% ownership) under IAS 28.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment in Associate | Asset (+) | 15,000.00 | - |
| Share of Profit from Associate | Revenue (+) | - | 15,000.00 |
💡 Accountant's Note
When you own a significant stake (but not control), you don't record dividends as income. Instead, you increase the value of your investment by your share of their profit.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.