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Unformatted text preview: relating to the joint arrangement. Each
operator recognises the assets it controls, and expenses and liabilities
it occurs, and its share of income earned in its own general ledgers. • Joint venture: joint venturers have rights to the net assets of the joint
arrangement. Each joint venturer applies “Equity Accounting”, as
describe in HKAS 28 (2011), except joint ventures where the investor
is a venture capital firm, mutual funds or unit trust , and it elects or is
required to measure such investments at fair value thorough profit or
loss in accordance with HKFRS 9 or HKAS 39 with certain
5 (I) Investments in Equities for an
Economic Group with a Parent
• Associate is an investee being significantly influenced by an
investor. Significant Influence means an investor has the power to
participate in the financial and operating policy decisions of the
investee but is not a control or joint control over those policies e.g.
voting rights between 20% to 50% in shares etc. Accounting and
reporting should be in...
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This document was uploaded on 04/03/2014.
- Spring '14