IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcfu/v2014y2014i4id423p57-69.html
   My bibliography  Save this article

Transition from proportionate consolidation method to the equity method according to IFRS
[Přechod z poměrné metody konsolidace na metodu ekvivalence podle IFRS]

Author

Listed:
  • Marie Zelenková

Abstract

The article deals with transition from consolidated financial statements reported by proportionate consolidation method to these reported by equity method. IFRS 11 Joint Arrangements that fully superseded IAS 31 Interests in Joint Ventures become effective for financial statements for annual periods beginning on or after 1 January 2013. IFRS 11 doesn't enable to use both alternative methods, i.e. proportionate consolidation and equity method. This standard allows only equity method for accounting for joint control over joint venture. Venturers that had prepared financial statements by proportionate consolidation method to that date must apply equity method for financial reporting now. The aim of this paper is to present application guidance of transition from proportionate consolidation to equity method according to requirements of IFRS 11 and to refer to specific problems relating to this transition.

Suggested Citation

  • Marie Zelenková, 2014. "Transition from proportionate consolidation method to the equity method according to IFRS [Přechod z poměrné metody konsolidace na metodu ekvivalence podle IFRS]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(4), pages 57-69.
    • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:4:id:423:p:57-69
    DOI: 10.18267/j.cfuc.423
    as

    Download full text from publisher

    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.423.html
    Download Restriction: free of charge
    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.423.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cfuc.423?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Equity method; IFRS; Consolidated financial statements; Proportionate consolidation method; Joint ventures; Venturer; Ekvivalenční metoda; Konsolidovaná účetní závěrka; Poměrná metoda konsolidace; Společná podnikání; Spoluovládající jednotka;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:4:id:423:p:57-69. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.