CFA key points

FRA
Investments in Associates:
When investment costs exceed the investors proportionate share of the
investees net identifiable assets, the difference is allocated to the following:
-

Any specific assets whose fair values exceed book values.

These amounts are then amortized over the useful life of
these specific assets.

Any remaining difference between the investment cost

and the fair value of net identifiable assets that cannot be
allocated to specific assets is treated as goodwill.
-

Goodwill is not amortized; it is checked for

impairment annually.