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Rescources contribution to an associate or JV

This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.

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November 28, 2017 at 2:33 pm #418677
abdulbasit16
Member
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If an entity is contributing resources to an associate or joint venture shud we capitalise these amts also to include them in the amt of investment in associate or joint venture. Or shud we expense such amts?
November 28, 2017 at 10:16 pm #418758
P2-D2
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Hi,
What do you mean by contributing resources? If we are contributing in buying more shares then we are increasing our investment. If we are contributing in providing money then we are lending the money to the associate/JV and so it would be a loan.
Thanks
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