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Unformatted text preview: requirements to allow investors to gain a better understanding of the nature, extent and financial effects of the activities that an entity carries out through joint arrangements (IFRS, 2011). For those of you that dont know what a joint venture is, it is an agreement that is made between two or more parties for the primary task of completing a business transaction. In a joint venture, all parties share in the profit and losses of the transaction. I think its a great idea that the IASB is trying to develop a tighter accounting of joint ventures. Knowing what the pros and cons are, which is what the IASB is hoping to do, businesses will not get stuck with losses because the venture was not a sound idea. References IFRS. (2011). Work plan for IFRSs: Joint Ventures. Retrieved from http://www.ifrs.org/Current+Projects/IASB+Projects/Joint+Ventures/Joint+Ventures.htm...
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This note was uploaded on 04/30/2011 for the course ECON 101 taught by Professor Smith during the Spring '11 term at University of Phoenix.
- Spring '11