Hi all,
I have a regarding the inv. in JV under Equity Method: if the entity investing in the JV, besides the capital contribution, contributes as well with a loan, how we account for the principal and interests at the level of the investor?
Shall we have in the BS the capital contribution + Principal? And in the P/L, shall we have the share of the investor into the JV P/L + interests?
Thank you.
KR,
Jose
Ask the Tutor ACCA SBR
Investment in JV under Equity Method
5y ago#1For exam purposes, if there was a loan to a JV, it will be a financial asset with interest income in the P&L. Nothing to cancel out.
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