SIC-20 — Equity Accounting Method – Recognition of Losses


  • IAS 28 Investments in Associates


  • Issued: July 2000
  • Effective date: 15 July 2000
  • Superseded by IAS 28 Investments in Associates (Revised 2003) effective for annual periods beginning on or after 1 January 2005.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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