Investments in Associates and Joint Ventures
This chapter focuses on the accounting for investments in associates and the application of the equity method when accounting for investments in associates and joint ventures. An entity invests in the financial instruments issued by another entity in order to finance that entity’s operations or an
expansion of its operations, to establish an advantageous business relationship with the other entity, or simply to earn an attractive rate of return either from the dividends or interest the instruments pay or from anticipated increases in the market prices of the financial instruments. Commensurate with this diversity of investment objectives, IFRS provides a diversity of approaches to the accounting for these investments.