Question & Answer: When is an entity exempt from applying the equity accounting method to present associates in its consolidated financial statements?…..

If an entity is a whole owner subsidiary or partly owners subsidiary of another company and it’s owners including those not entitled to vote were informed about the same of non application of equity method and they don’t objectivity for it’s Mandatory application of equity method. And

It is not a publicly traded or listed company and it is not in process of listing and ultimate parent company or any intermediary parent company produced the financial statements for the availability of public and us in compliance with the GAAP in which subsadaries are consolidated and are measured at fair value through profit and loss account.

If all the above conditions are satisfied then entity is exempt.