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SIC 20 Equity Accounting Method – Recognition of Losses
— Superseded —
References
  • IAS 28 Investments in Associates

History

  • Issued: July 2000
  • Effective date: 15 July 2000
  • Superseded by IAS 28 (Revised 2003) effective for annual financial reporting periods beginning 1 January 2005.

SUMMARY OF SIC 20

SIC 20 confirms that in applying the equity method of accounting, the investor normally stops recording its share of the continuing losses of an associate once the carrying amounts of financial interests which are accounted for under the equity method are reduced to nil.

Click for IASC Press Release on SIC 20 (PDF 36k)

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