ASIC raised concerns with not consolidating subsidiaries and not
equity accounting associates in the financial report for the year ended 31 December 2016.
Private
Equity Accounting, Investor Reporting, And Beyond
The largest declines involved private equity, which reversed a three-year trend of private
equity accounting for an increasing proportion of deals.
Moving from proportionate consolidation to
equity accounting will affect each of a company's financial statement line items, notably decreasing both revenue and gross assets, even though the net amount at the bottom line should be unaffected," Balasubramanian said.
Under new
equity accounting rules for associated companies RAK Petroleum assumes a proportionate share of DNO International's profit and loss in its own financial results as from 2010.
JP Morgan said it has been appointed by IFC Asset Management Company (AMC), a new wholly owned subsidiary of the IFC, a member of the World Bank Group, to provide outsourced private
equity accounting and fund administration services.
Other matters that are related to
equity accounting.
When the equity investment is less than 20 percent, exclusive agreements between the traditional enterprise and the dot-com may trigger
equity accounting, since an exclusive distribution agreement can constitute significant influence.
The importance of transfer-pricing approaches, the treatment of intercompany accounts in consolidation and
equity accounting and the need to disclose related-party transactions are new ideas, and it'll take some time for them to be understood and consistently applied.
Subjects covered in the report include capital market structures and economic conditions, standard-setting processes, conceptual frameworks, accounting standards, effects of changing prices, business combinations, consolidated and
equity accounting and income taxes.
Equity accounting for those subsidiaries is no longer permitted.
