Include joint ventures in the financial position note

To include joint ventures in the financial position note:

  • Click Reports > Options > Setup
  • Switch Placement - Include joint ventures in the financial position note to On
  • The Interests in joint ventures note will hide and the paragraphs and tables will appear in the Non-current assets - investments accounted for using the equity method note

 

 

Investment types

Each of following investment types have their own disclosure note and accounting treatment (refer to the accounting policies for further explanation):

 

Interests in subsidiaries

  • Controlled by the entity
  • All assets, liabilities, revenue and expenses accounted for in the many lines of the primary statements
  • If another entity owns part of a subsidiary, this is accounted for as a non-controlling interest (share of profit allocated to APPMI and equity share allocated to EQM##)

 

Interests in associates

  • Not controlled by the entity (the entity is the non-controlling interest, the other side of the coin)
  • Equity accounted and the net profit/loss is accounted for as one line item in the P&L (standard allocations are RVRPA, RVRPJ and RVRPT) and the net investment position is accounted for as one line asset item in NAE##

 

Interests in joint ventures

  • Jointly controlled by the entity and other party/parties (not one controlling party)
  • Equity accounted and the net profit/loss is accounted for as one line item in the P&L (standard allocations are RVRPA, RVRPJ and RVRPT) and the net investment position is accounted for as one line asset item in NAE##

 

Interests in joint operations

  • Jointly controlled by the entity and other party/parties (not one controlling party)
  • The entity's share of assets, liabilities, revenue and expenses accounted for in the many lines of the primary statements (and thus no adjustment is needed for other parties share)

 

 

Change number of decimal places

To change the number of decimal places for ownership interest percentages:

  • Click Reports > Options > Rounding
  • Set Interests - Joint ventures to between 0 and 5 decimal places
  • It is also possible to click the settings icons to the right of the table

 

 

Technical notes

  • Summarised financial information on associates is required when material to the consolidated entity
  • The 'Reconciliation of the consolidated entity's carrying amount' is considered a grey area. The intention is to provide information that is meaningful to the consolidated entity's carrying amount. An alternative would be to reconcile the net assets to the carrying amount, deducting for instance the portion of net assets that is not the consolidated entity's share and adding adjustments like goodwill