The revenues and costs and assets and liabilities of Tangerine Co are added to the revenues

and costs and assets and liabilities of Clementine Co on a line by line basis.

An amount is shown in the statement of financial position for ‘investment in associate’ being the

original cost paid for the investment plus Clementine Co’s share of the profit after tax of

Tangerine Co. 21% of the profit after tax of Tangerine Co should be added to Clementine Co’s

profit before tax in the statement of profit or loss each year.

An amount is shown in the statement of financial position under ‘investments’ being the original

cost paid for the investment, this amount does not change. Dividends received from Tangerine

are recognised in the statement of profit or loss of Clementine Co.

An amount is shown in the statement of financial position under ‘investments’ being the original

cost paid for the investment, this amount does not change. 21% of the profit after tax of

Tangerine Co should be added to Clementine Co’s profit after tax in the statement of profit or

loss each year