Unit 11 - Grp Rep - Consol Fin Stat

Each operator recognises the assets it controls and

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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 disclosures. 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.

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