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FR&A - downstream sales with equity method

I’m very certain that downstream sale can be recognized to the percentage of goods sold to outside parties. But from my undergraduate accounting class (Canada) I also clearly remember that downstream sale is NOT recognized. Tried google and find it seems to be a difference between US GAAP and IFRS. Could anyone provide a more definitive answer?

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The share of the associate’s profit from reselling goods from a downstream sale can be recognized. If 50% is resold, then the share of profit from the remaining 50% cannot be recognized.

The rules for upstream and downstream sales are pretty much identical: you do not recognize the profit on these sales until the goods are sold to a third party.

Simplify the complicated side; don't complify the simplicated side.

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