IFRS 12 para 22(c), disclosure of unrecognised profits/(losses) of associates and joint ventures in deficit

Telstra Corporation Limited – Annual report – 30 June 2020

Industry: telecoms

6.2 Investments in joint ventures and associated entities (extract)

6.2.3 Suspension of equity accounting

Table E presents our unrecognised share of profits/(losses) for the financial year and cumulatively for our entities where equity accounting has ceased and the investment is recorded at zero due to losses made by these entities and/or reductions in the equity accounted carrying amount.

c) Equity method of accounting (extract)

Investments in associated entities and joint ventures are carried in the consolidated balance sheet at cost plus post-acquisition changes in our share of the investment’s net assets and net of impairment loss. Goodwill relating to an investment in an associated entity or joint venture is included in the carrying value of the investment and is not amortised. When Telstra’s share of losses exceeds our investment in an associated entity or joint venture, the carrying amount of the investment is reduced to nil and no further losses are recognised.