Chapter 5 Lesson 1 Associates and the equity method PSAR 1 & 2

In this lesson I open Chapter 5, groups, with the question every group question starts from: when you own part of another body, how much say does it give you? I take you through one water family, the ladder of say, significant influence and the 20% starting point, and then the equity method step by step: start at what you paid, add your share of the surplus, take off the cash you receive. Then I work the questions from the book and the August 2026 paper, and finish with what the agency shows in its own separate statements under IPSAS 34. The ladder: no real say, significant influence, joint control, control, and the IPSAS each one leads to Significant influence: a voice at the table, the 20% starting point and the five signs; why a grant is not an associate The equity method: cost, goodwill kept inside, the share of surplus or deficit, cash received, and the floor at zero Questions: practice from the book, August 2026 Question 4(c) (6 marks), and the separate-statements choices (3 marks) Timestamps 0:00 Welcome 1:01 Meet the case: one water family 4:00 Does owning part make it yours? The ladder 8:41 A voice at the table: significant influence 10:34 The 20% starting point and the signs 14:42 Not every investment counts 18:00 Why not just record the dividends? 21:21 Same shares, two treatments 25:22 The equity method, step by step 30:34 Year two and the floor at zero 35:12 Practice from the book 36:07 From the papers: August 2026, Question 4(c) 37:36 WDA's own separate statements (IPSAS 34) 40:53 Key takeaways More at https://learnipsas.com If this helped you, please subscribe and share it with your colleagues and classmates. #IPSAS #PublicSectorAccounting #CPAYussuf