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Associates

Overview

The Associates module is composed of three interconnected components:

Investments in Associates represent ownership stakes in entities where the investor has significant influence but not full control (e.g., joint ventures). These investments are reported on the Balance Sheet under Assets. The closing balance is calculated as the opening balance plus Earnings from Associates, minus Dividends from Associates.

Earnings from Associates represent the investor’s share of the associate’s net income. These earnings are reported on the Income Statement (typically below EBIT). Since they are non-cash, they are subtracted from net income and added back in the Cash Flow Statement under Operating Activities.

Dividends from Associates are cash distributions received from the associate. They reduce the investment balance and are reported in the Cash Flow Statement under Cash Flow from Investing Activities.

Model Flow

[NTD: Add visual model flow chart here]

Adding a module

To add an Associates module to a model, select one of the following nodes in the Blueprint window:

  • Schedule → Associates
  • Balance Sheet → Investment in Associates
  • Income Statement → Earnings from Associates
  • Cash Flow Statement → Dividends from Associates

Editable Properties

Investment in Associates

Inclusion

Impacts the following sections of the model:
- Associates Schedule
- Balance Sheet (Assets)
- DCF, LBO, and M&A models

See Inclusion for more details.

Name

See Display Name for more details.

Earnings from Associates

Inclusion

Impacts the following sections of the model:
- Associates Schedule
- Income Statement
- Cash Flow Statement → Operating Cash Flow → Non-cash adjustments
- DCF, LBO, and M&A models

See Inclusion for more details.

Name

Default: Earnings from Associates
See Display Name for more details.

Forecast

Default: Growth Rate
Available Methods: - Growth Rate - Hardcoded Input - Nil - Last Historical - Ratio

Non-Taxable

Default: False
Taxes are typically paid at the associate level.
See Non-Taxable for more details.

Dividends from Associates

Inclusion

Impacts the following sections of the model:
- Associates Schedule
- Cash Flow Statement → Investing Cash Flows
- DCF, LBO, and M&A models

See Inclusion for more details.

Name

Default: Dividends from Associates
See Display Name for more details.

Forecast

Default: Ratio (% of Earnings from Associates)
Available Methods: - Ratio (recommended) - Hardcoded Input - Nil - Last Historical - Growth Rate

Additional Materials

See Associates 101 page for more details.