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MikeLittle.
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- December 2, 2015 at 9:09 pm #287081
Adjustment : ejoy entered into a joint agreement with another company on 31 May 2006 , which met the IFRS 11 definition of a joint venture.The joint venture is a limited company and ejoy has contributed assets at fair value of 20m (carrying value 14m).Each party hold five million ordinary shares of 1 in the joint venture.The gain on disposal of the assets (6m) to the joint venture has been included in ‘other income’.
How are we going to treat it in the consolidated statement of profit and loss?
December 3, 2015 at 8:37 am #287166Equity accounting – like you would for an associate company
Share of this year’s joint venture, adjusted, time apportioned profit after tax shown as a pre-tax item
Need to remove Ejoy’s share of the unrealised profit on the transfer of the TNCA into the venture
December 3, 2015 at 10:17 am #287203Can you please briefly explain about removal of ejoy’s share of gain ?I didnt get it.
December 3, 2015 at 1:03 pm #287246Calculate Ejoy’s share of profit. Deduct half the pup, resultant figure is then used to:
Dr investment in joint venture
Cr retained earnings - AuthorPosts
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