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Joint Arrangement in Consolidated Financials

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Joint Arrangement in Consolidated Financials

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • June 2, 2021 at 6:51 pm #622828
    Edward-17-Bugeja
    • Topics: 1
    • Replies: 0
    • ☆

    Hello, I am sitting for the Dipifr exam and have an query please. If you are C and you are doing consolidated financials including subsidiaries A & B and A have an investment in a joint arrangement. If the joint arrangement is a joint venture I understand that on the consolidated financials this will be accounted for under the equity method, right? But if the joint arrangement is a joint operation how will this be accounted for in the consolidated financials pls?
    Thanks
    Edward

    June 3, 2021 at 9:42 pm #623007
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6115
    • ☆☆☆☆☆

    Hi,

    Good luck with the exam. If memory serves me right then you will just recognise your share of the revenue and costs of the operation. Check out the SBR notes/videos and you will find more detail there.

    Thanks,

    Chris

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