Where there are transactions between the investor and associate that result in an unrealised profit, the investor's share of the associate's profit is:

Question

Quizplus · Accepted Answer

If there are transactions between the investor and associate resulting in unrealized profit, it means there is an intercompany transaction. In such a case, the investor's share of the associate's profit would be affected regardless of whether the transaction is upstream (i.e. from associate to investor) or downstream (i.e. from investor to associate) as both transactions can have an impact on the associate's profit.

Where There Are Transactions Between the Investor and Associate That