Which of the following statement is correct? (PLEASE PROVIDE EXPLANATION) A) All joint arrangements are accounted for under IAS 28. B) Joint arrangements classified as joint ventures are accounted for under IFRS 10. C) Joint arrangements classified as joint ventures are accounted for under IAS 28.
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Which of the following statement is correct?
(PLEASE PROVIDE EXPLANATION)
A) All joint arrangements are accounted for under IAS 28.
B) Joint arrangements classified as joint ventures are accounted for under IFRS 10.
C) Joint arrangements classified as joint ventures are accounted for under IAS 28.
D) Joint arrangements classified as joint operations are accounted for under IAS 28.
E) None of the above.
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- Which of the following statements about joint arrangements is/are incorrect: (i) Whenever a joint arrangement is structured through a vehicle that is separate from the parties, the arrangement is classified as a joint venture (ii) Whenever the contractual arrangements give the parties rights to the assets and obligations for the liabilities of the arrangement, the arrangement is classified as a joint operation (iii) Joint operations are reported in the consolidated statement of financial position of the joint operator by recognising the share of assets and liabilities attributable to the joint operator (iv) Joint ventures are reported in the consolidated statement of financial position of the joint venturer using the equity method of accounting a. (i) only b. (ii) only c. (iii) only d. (iv) only e. (i) and (ii)Which of the following statements is not true in relation to joint control? A. Each party must have an equal interest for joint control to exist B. Joint control exists only where there is contractually agreed sharing of control C. Entities over which a party has joint control are accounted for in accordance with PFRS 11 Joint Arrangement D. Joint control requires the unanimous consent of the parties sharing controlThis is a type of arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement Joint operationJoint ventureJoint entryJoint undertaking
- A joint arrangement in which the assets and liabilities relating to the arrangement are held in a separate vehicle can be: a. Either joint venture or joint operation b. Joint venture c. Neither joint venture nor joint operation d. Joint operation1. PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An entity over which the investor has significant influence. A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. An entity that is controlled by another entity. 2. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss? Choices None of these. Reclassification of financial assets out of the FVTOCI measurement category to FVTPL. Reclassification of financial assets out of the amortized cost measurement category to FVTPL. Reclassification of financial assets out of the FVTPL measurement category.PFRS 3 must be applied when accounting for business combinations, but does not apply to:i. Formation of a joint arrangementii. The acquisition of an asset or group of assets that is not a business although general guidance is provided on how such transactions should be accounted foriii. Combination of entities or businesses under common controliv. Acquisitions by an investment entity of a subsidiary that is required to be measured at fair value through profit or loss under PFRS 10 Consolidated Financial Statementsv. Mutual entitiesvi. Not-for-profit organizations i, ii, iii, iv, v, and iv i, ii, iii, and iv i, ii, iii, iv, and vi i, ii, iii, iv, and v
- PFRS 3 must be applied when accounting for business combinations, but does not apply to:i. Formation of a joint arrangementii. The acquisition of an asset or group of assets that is not a business although general guidance is provided on how such transactions should be accounted foriii. Combination of entities or businesses under common controliv. Acquisitions by an investment entity of a subsidiary that is required to be measured at fair value through profit or loss under PFRS 10 Consolidated Financial Statementsv. Mutual entitiesvi. Not-for-profit organizations a. i, ii, iii, iv, and v b. i, ii, iii, and iv c. i, ii, iii, iv, v, and iv d. i, ii, iii, iv, and viMultiple Choice Questions Which of the following statements is correct? All joint arrangements which are not structured through a separate vehicle are classified as joint ventures. For a joint venture, the rights pertain to the rights and obligations associated with individual assets and liabilities, whereas with a joint operation, the rights and obligations pertain to the net assets. Where the joint operators have designed the joint arrangement so that its activities primarily aim to provide the parties with an output it will be classified as a joint venture. In considering the legal form of the separate vehicle if the legal form establishes rights to individual assets and obligations, the arrangement is a joint operation. If the legal form establishes rights to the net assets of the arrangement, then the arrangement is a joint venture. A 50:50 joint operation was commenced between two participants. Mary Company contributed cash of $90 000, and Strickland Company contributed…Which of the following best indicates that two parties are related for purposes of PAS 24? The parties are a parent and a subsidiary One party is larger than the other. One party has the ability to affect the financial and operating decisions of the other party through control, significant influence or joint control One party is in the private sector and the other is a government regulatory body.
- Answer the following questions on any piece of paper.1. What is a joint venture?2. Distinguish Joint venture from joint consortium and joint arrangement?3. How would you account for Joint venture?4. Can an individual enter into a joint venture with a corporation? how do you account for that?5. Distinguish partnership vs. joint venture6. Can an entity go into a joint arrangement with the government? how do you account for that?7. What is a Built Operate Transaction?8. If both big companies enter into a joint venture, will that signify unfair competition? explain briefly.9. Is there a limit to a number of corporation that can enter into a JV?10. What are the legal requirements to enter into a JV?11. Can a JV use equity method of accounting? how bout the share of net income of each individual corporation, how would you account for that?12. Can a foreign company and a domestic company enter into a JV? what are the requirements?13. How would you report in case a JV entered into by a foreign…A contractual agreement where two or more parties undertake an economic activity that is subject to joint control iscalled__________.Select one:a.controlled Operationsb.joint controlc.controld.joint ventureIn a joint arrangement, which of the following establishes joint control by the parties? a. mutual sharing of control b. ownership interest of more than 20% c. contractual arrangement d. stock certificate
