Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p40
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 108116–111078

such income and expenses from investments accounted for using the equity method. Furthermore, the operating category is not limited to income and expenses from an entity's main business activities. It includes all income and expenses that are not classified by an entity in the other categories applying paragraphs 53–68, including such income or expenses that are volatile or non-recurring.

Investing

Investments in associates, joint ventures and unconsolidated subsidiaries
B43 Paragraphs 53 and 55 set out requirements for the classification of income and expenses from investments in associates and joint ventures. These investments comprise:
(a) investments in associates and joint ventures accounted for using the equity method in accordance with paragraph 16 of AASB 128 Investments in Associates and Joint Ventures and paragraph 10(c) of AASB 127;
(b) investments in associates and joint ventures (or a portion thereof) that an entity elects to measure at fair value through profit or loss in accordance with AASB 9 applying paragraphs 18–19 of AASB 128 and paragraph 11 of AASB 127; and
(c) investments in associates and joint ventures in separate financial statements that are accounted for at cost applying paragraph 10(a) of AASB 127 or in accordance with AASB 9 applying paragraph 10(b) of AASB 127.
B44 Paragraphs 53 and 55 also set out requirements for the classification of income and expenses from unconsolidated subsidiaries. Investments in unconsolidated subsidiaries comprise:
(a) investments in subsidiaries in separate financial statements accounted for using the equity method in accordance with paragraph 10(c) of AASB 127;
(b) investments in subsidiaries held by an investment entity that are measured at fair value through profit or loss in accordance with paragraph 31 of AASB 10 and paragraph 11A of AASB 127; and
(c) investments in subsidiaries in separate financial statements that are accounted for at cost applying paragraph 10(a) of AASB 127 or in accordance with AASB 9 applying paragraph 10(b) of AASB 127.

Assets that generate a return individually and largely independently of the entity's other resources
B45 Paragraph 53(c) requires an entity to identify assets that generate a return individually and largely independently of the entity's other resources. The return could be positive or negative.
B46 Assets that generate a return individually and largely independently of the entity's other resources in paragraph 53(c) typically include:
(a) debt or equity investments; and
(b) investment properties, and receivables for rent generated by those properties.
B47 Income and expenses specified in paragraph 54 from such assets typically include:
(a) interest;
(b) dividends;
(c) rental income;
(d) depreciation;
(e) impairment losses and reversals of impairment losses;
(f) fair value gains and losses; and
(g) income and expenses from the derecognition of the asset, or its classification and remeasurement as held for