Unit 11 - Grp Rep - Consol Fin Stat

Each investor should account for its interest in the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ly controls the investee. Each investor should account for its interest in the investee in accordance with the relevant HKFRSs, such as HKFRS 11 Joint Arrangements, HKAS 28 (2011) Investments in Associates and Joint Ventures or HKFRS 9 Financial Instruments. • Joint Venture is an investee being jointly controlled by two or more investors. Joint control means two or more parties contractually agreed sharing of control in a joint arrangement. Joint control exists only when decisions about the investee’s relevant activities, i.e. those that significantly affect the returns of the arrangement, require the unanimous consent of the parties sharing the control of the arrangement. Accounting and reporting should be in accordance with HKFRS 11 & HKFRS 12. 4 (I) Investments in Equities for an Economic Group of Entities • According to HKFRS 11, joint arrangement has two classifications: joint operation and joint venture. • Joint operation: joint operators have rights to the assets and obligations for the liabilities...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online