difference between joint operation and joint venture

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This topic contains 3 replies, has 3 voices, and was last updated by Profile photo of MikeLittle MikeLittle 11 months, 1 week ago. This post has been viewed 1796 times

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  • Profile photo of anisa786
    anisa786
    Participant
    • Topics: 37
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    Hi MIke

    what are the key differences between joint venture and joint operation?

    Thanks


    Profile photo of bilal123123
    bilal123123
    Participant
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    in case of joint operations we take our share of assets,liabilities,cost and receipts and than recognise it in our statement of profit and loss.in case of joint venture we take share of net assets. i hope its helpfull.


    Profile photo of anisa786
    anisa786
    Participant
    • Topics: 37
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    Thanks bilal for ur speedy response

    Makes sense


    Profile photo of MikeLittle
    MikeLittle
    Keymaster
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    Yes, Bilal is correct and jointly held assets are treated in the same way as joint operations – each individual venturer deals with their respective involvement within their own accounting records.

    Only for a joint venture is the equity method applied whereby we treat the venture in the same way as we would an associate

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