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Joey dec 14

ZZainb8y ago
I have 2 question regarding note 5 Why do we remove 1.5 million Why do we use 50% to calculate joey share Thanks
P2-D2P2-D2Tutor8y ago#1
Hi, The arrangement is effectively a joint venture and we should record our share of the profits. As there are only two parties to the arrangment then we have a 50% holding, and as $3 million of profit has been recorded we are only entitled to 50% of this, which is why we then remove the $1.5 million. Thanks
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