International Financial Reporting Standards (IFRS) provides for various methods for accounting for investments in other entities. Other entities which are not consolidated may be classified as an “associate” per International Accounting Standard (IAS) 20, or a “joint arrangement” per IFRS 11, or an “investment entity” per IFRS 10. In addition, IFRS 10 provides guidance for entities that are consolidated. This course explores when it is appropriate to apply each of the accounting methods for investments in other entities, and the resulting financial statement implications.
Prerequisites
No advanced preparation or prerequisites are required for this course.
Learning Objective
- Explore the equity method for accounting for associates that are “significantly influenced” by the reporting entity per International Accounting Standard (IAS) 20.
- Discover the proper treatment of joint ventures and joint operations per International Financial Reporting Standard (IFRS) 11.
- Recognize when an entity qualifies as an investment entity per IFRS 10, which precludes consolidation by the parent entity.
- Discover the principles of consolidation per IFRS 10.
Last updated/reviewed: September 30, 2026
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Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION AND OVERVIEW
- Introduction to Accounting for Investments in Other Entities, Including Consolidation, under IFRS 1:35
- Associates And The Equity Method - Overview 3:29
- Equity Method - Accounting Considerations 7:08
- Equity Method - Reporting Considerations and Forthcoming Requirements 3:16
- Joint Arrangements 3:47
- Investment Entity Consolidation Exception 3:37
- Consolidation Overview and Power to Direct Model 7:40
- Noncontrolling Interest 3:59
- Derecognition Special Considerations, Reporting Special Considerations, and Conclusion 3:45
CONTINUOUS PLAY
SUPPORTING MATERIALS
- Slides: Accounting for Investments in Other Entities, Including Consolidation, under IFRS PDF
- Accounting for Investments in Other Entities, Including Consolidation, under IFRS Glossary/Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM locked
