The Hanwell Company acquired a 30% equity interest in The Northfield Company for P400,000 on 1 January 2019.  In the year to 31 December 2019 Northfield earned profits of P80,000 and paid no dividend.  In the year to 31 December 2020 Northfield incurred losses of P32,000 and paid a dividend of P10,000.

In Hanwell's consolidated statement of financial position at 31 December 2020, what should be the carrying amount of its interest in Northfield, according to PAS28 Investments in associates?

Answer rating: 100% (QA)

SOLUTION According to PAS28 Investments in associates an investor should account for its investment ... View the full answer