diff --git a/loki/transformations/sanitise/associates.py b/loki/transformations/sanitise/associates.py
index 9e50c9e1b..5335ff3c1 100644
--- a/loki/transformations/sanitise/associates.py
+++ b/loki/transformations/sanitise/associates.py
@@ -161,8 +161,11 @@ def map_scalar(self, expr, *args, **kwargs):
             expr = scope.inverse_map[expr.basename]
             return self.rec(expr, *args, **kwargs)
 
-        # Update the scope, as this one will be removed
-        return expr.clone(scope=scope.parent)
+        # Update the scope, as any inner associates will be removed.
+        # For this we count backwards the nested scopes, the tail of
+        # which will the (innermost) associates.
+        new_scope = scope.parents[::-1][depth-self.start_depth-1]
+        return expr.clone(scope=new_scope)
 
     def map_array(self, expr, *args, **kwargs):
         """ Partially resolve dimension indices and handle shape """
diff --git a/loki/transformations/sanitise/tests/test_associates.py b/loki/transformations/sanitise/tests/test_associates.py
index f15ce9ae4..bf24da0c5 100644
--- a/loki/transformations/sanitise/tests/test_associates.py
+++ b/loki/transformations/sanitise/tests/test_associates.py
@@ -503,7 +503,8 @@ def test_associates_transformation(frontend, merge, resolve):
 @pytest.mark.parametrize('frontend', available_frontends(
     skip=[(OMNI, 'OMNI does not handle missing type definitions')]
 ))
-def test_resolve_associates_stmt_func(frontend):
+@pytest.mark.parametrize('depth', [0, 1, 2])
+def test_resolve_associates_stmt_func(frontend, depth):
     """
     Test scope management for stmt funcs, either as
     :any:`ProcedureSymbol` or :any:`DeferredTypeSymbol`.
@@ -518,32 +519,42 @@ def test_resolve_associates_stmt_func(frontend):
   real(kind=8) :: not_an_array
   not_an_array ( x, y ) =  x * y
 
+associate(d=>b)
+associate(c=>a)
 associate(RTT=>YDCST%RTT)
   a = not_an_array(RTT, 1.0) + a
   b = some_stmt_func(RTT, 1.0) + b
 end associate
+end associate
+end associate
 end subroutine test_associates_stmt_func
 """
     routine = Subroutine.from_source(fcode, frontend=frontend)
 
-    associate = FindNodes(ir.Associate).visit(routine.body)[0]
+    associates = FindNodes(ir.Associate).visit(routine.body)
+    assert len(associates) == 3
     assigns = FindNodes(ir.Assignment).visit(routine.body)
     assert len(assigns) == 2
     assert isinstance(assigns[0].rhs.children[0], sym.InlineCall)
-    assert assigns[0].rhs.children[0].function.scope == associate
+    assert assigns[0].rhs.children[0].function.scope == associates[2]
     assert isinstance(assigns[1].rhs.children[0], sym.InlineCall)
-    assert assigns[1].rhs.children[0].function.scope == associate
+    assert assigns[1].rhs.children[0].function.scope == associates[2]
 
-    do_resolve_associates(routine)
+    do_resolve_associates(routine, start_depth=depth)
+
+    associates = FindNodes(ir.Associate).visit(routine.body)
+    assert len(associates) == depth
 
     assigns = FindNodes(ir.Assignment).visit(routine.body)
+    # Determine the outer routine or last associate left
+    outer_scope = routine if depth == 0 else associates[depth-1]
     assert len(assigns) == 2
     assert assigns[0].rhs == 'not_an_array(YDCST%RTT, 1.0) + a'
     assert assigns[1].rhs == 'some_stmt_func(YDCST%RTT, 1.0) + b'
     assert isinstance(assigns[0].rhs.children[0], sym.InlineCall)
-    assert assigns[0].rhs.children[0].function.scope == routine
+    assert assigns[0].rhs.children[0].function.scope == outer_scope
     assert isinstance(assigns[1].rhs.children[0], sym.InlineCall)
-    assert assigns[1].rhs.children[0].function.scope == routine
+    assert assigns[1].rhs.children[0].function.scope == outer_scope
 
     # Trigger a full clone, which would fail if scopes are missing
     routine.clone()