Equity Method

[CBPian]

What is the equity method of accounting in associates? And what is the treatment of tax of the associate in this method?
Ill appreciate if someone can show by example.
Thanks.

[Augustus]

I think you should consult International Accounting Standard relating to investment in assiocates and a book name Topple as it will help you out to understand this

[CBPian]

Well if someone can simply explain the tax treatment of consolidation of associates in equity method... Ill be greatful...
Dont want to look into standards )

[Goodman]

I have a good material explaining Associates and equity method, I will try to find it over the weekend and will send by mail, if found.

However, associates for the purpose of financial reporting could be different as compared to associates for the purposes of tax treatment. Guidance is sought from the reporting standards but tax treatment could be different.

[CBPian]

I'll appreciate any help.
However, to be exact I am looking for two points (financial reporting consolidation)
1. do we consolidate at EBT level
2. do we exclude any statutory / legal reserve not available to the consolidating entity in the normal course of business.