difference between joint operation and joint venture

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This topic contains 3 replies, has 3 voices, and was last updated by Avatar of MikeLittle MikeLittle 5 months, 1 week ago. This post has been viewed 639 times

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  • Avatar of anisa786
    anisa786
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    Hi MIke

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

    Thanks


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    bilal123123
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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.


    Avatar of anisa786
    anisa786
    Participant
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    Thanks bilal for ur speedy response

    Makes sense


    Avatar 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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