Can you please, somebody help me?! I need to consolidate investor company and its accosiate. I used the equity method. There is upstream and downstream transaction of depreciable assets. I am not sure what is going on with the unrealised profit of upstream and downstream transaction - is it going to reduce the investment in accosiate?
Hi,
Generally the associate is considered to be outside the group. Therefore any sales or purchases between group companies and the associate are not normally eliminated and will remain part of the consolidated figures in the income statement.