Indian Accounting Standard (Ind AS) 28, Investments in Associates and Joint Ventures, Important Material
Ind AS 28: Investments in Associates and Joint Ventures
The investing company can exert significant influence over the financial and operating policies of the investee company, it will also have an active interest in its net assets and results.
In that case the nature of the relationship differs from that of a simple investment.
The operations of associate and joint venture are significant part of the investor’s, management decisions and operational skills. There is a clear demonstrable requirement that makes equity method highly desirable.
The objective of this Standard is to prescribe the accounting for investments in associates and to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.
This Standard shall be applied by all entities that are investors with joint control of, or significant influence over, an investee.