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DESCRIPTION
A report in advanced accountingTRANSCRIPT
Application of PAS 28 to
JOINT VENTURES
CONSOLIDATED FINANCIAL POSITION
• INTEREST IN THE JOINT VENTURE AT A COST PLUS SHARE of post-acquisition in total comprehensive income
• GROUP SHARE OF THE POST-ACQUISITION total comprehensive income in the consolidated equity
CONSOLIDATED INCOME STATEMENT AND OCI
• Consolidated share in the joint venture’s NET INCOME OR LOSS
• Consolidated share in the joint venture’s OCI
• DISCONTINUED from the date on which the venture ceases to have a joint control over, or have significant influence, on a joint venture
DOES NOT APPLY TO:1. investments in associates 2. joint ventures held by venture capital
organizations, mutual fund, unit trusts, and similar entities
PAS 28
USE OF THE EQUITY METHOD
ENLARGED through: “control” “significant influence” “Contractual Arrangements or joint control”
that an investor has over the financial and operating policies of subsidiaries, associates, and joint venture respectively,
another level of reporting is required depending on the financial statements prepared
ECONOMIC BOUNDARIES