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Sir Dec 19 Q3 b ii is not their in the revision kit lecture
Anyways, I want to ask 1 thing related to this Qs that the carrying amount of the joint venture in Digwire’s financial statements at 31 December 20X6 will be $11·5 million as per examiner answer, but sir should not it be 6+3=9/2 + 5/2 = 7? As both Digwire and techgame co has joint control over assets?This is JV not JO, so don’t refer to joint control over assets – it is joint control over company.
Assets would be transferred in at FV which is 14.
Prize winner would than eliminate 50% of profit on sale
Sir ,carrying amount in JV and investment in JV is same thing or are they different?
In the above Qs investment in joint venture in digwire f/s would be 14 or would it be 7?Likewise if there is land with FV of 100, and it is jointy controlled by entity A and entity B, and suppose this is the case of JV, so in this case investment in joint venture in A’s financial statement would be 100 or would it be 50?
Same thing.
14 less unrealised profit – that’s the value of the assets that I contributed.
Joint control of land sounds like joint arrangement to me – joint ventures are joint control of shares not assets
I think you are over-thinking this
Sir joint venture means parties have right to net assets, right?
And net assets means equity which means assets less liabilitiesSo if there is land with FV of 100 and there is liability of 10, and this is the case of JV by entity A and entity B, so in this case investment in joint venture in A’s financial statement would be 90 or would it be 45?
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