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...
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This document was uploaded on 04/03/2014.
- Spring '14