nd losses after the acquisition, plus its share of post-acquisition movements in provision, net of dividends received. Losses that reduce the value of the investment below zero, are the (reduced) other long-term assets, which, in fact, form the net investment in the associate, such as preferred stock, long-term receivables and loans. Losses in excess of investment in the ordinary shares of the investor are the other components in reverse order of priority of debt claims. Further losses are recorded as a liability only to the extent that the investor has a legal obligation or liability arising out of the practice, in respect of payments on behalf of the associate. Disclosure of the results, assets and liabilities of associates .. S. GAAP Similar to IFRS.In general, the rules are comparable to IFRS. However, lack of RAP some detailed rules provided by IFRS, may lead to differences in the classification and evaluation of investments in the financial statements. For example, RAP does not provide the inclusion of long-term loans to related company, the cost of investment in associates and appropriate allocation of losses in excess of investment equity investors, to reduce long-term assets, which under IFRS are effectively an investment in an associate.financial statements prepared on the basis of the investor uniform accounting policies for like transactions and events, amendments are made to the accounting policies of the associate in order to bring it in line with the accounting policies of the investor .. S. GAAP financial statements of the investor does not necessarily make the amendments, if of associated company follows an alternative method that is permitted under US GAAP, but such amendments are allowed.Similar to IFRS.Impairment testing is carried out in accordance with IFRS (IAS) 36 (IFRS (IAS) 28.33) in the case in respect of investment, there is objective evidence of impairment of one of the specified in IFRS (IAS) 39.59 (IFRS (IAS) 28.31). In assessing the future cash flows for the purpose of impairment testing, the investor can use its share of the net future cash flows associated company, or cash flows expected as a result of dividends. In respect of goodwill To invest directly tested for impairment Investors are organized .. S. GAAP Impairment of investment in associated company is recognized if the decline in its value is constant. Similar to IFRS, the goodwill To invest directly tested for impairment Investors are organized. If there is evidence of permanent impairment of an investment is written down to its fair value.impairment test is performed.IFRS define a joint venture as a contract whereby two or more parties undertake an economic activity that is subject to joint control. Joint control - is a joint exercise control over an economic activity, due to the contract .. S. GAAP US GAAP defines corporate joint venture as a corporation owned and controlled by a small group of companies as a separate and specific busi...
