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Joint ventures -consolidate or treat as investments under IFRS?


We have a joint venture where we own 50% of shares in a company. Should we consolidate it in our accounts or treat it as an investment?

asked Dec 29, 2016 in IAS 28 - Investments in Associates and Joint Ventures by Peterz Level 2 Member (4,560 points)

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According to IAS 28, Investment in Joint venture should be consolidated in financial statements of the Investor using Equity Method.

As per equity method,  on initial recognition the investment in a joint venture is recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the investee after the date of acquisition. The investor’s share of the investee's  profit or loss is recognized in the investor’s profit or loss.
answered Dec 30, 2016 by Shivangi Level 4 Member (7,570 points)
selected Dec 30, 2016 by Mian Musawar


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