Gaap consolidating joint ventures

Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.IFRS 11 Joint Arrangements outlines the accounting by entities that jointly control an arrangement.An entity determines the type of joint arrangement in which it is involved by considering the structure and form of the arrangement, the terms agreed by the parties in the contractual arrangement and other facts and circumstances.[IFRS 11:6, IFRS , IFRS ] Regardless of the purpose, structure or form of the arrangement, the classification of joint arrangements depends upon the parties' rights and obligations arising from the arrangement.Under Canadian generally accepted accounting principles (GAAP), firms are required to proportionally consolidate joint venture investments, as opposed to the United States where the equity method is used.Using a sample of Canadian firms, this study investigates the relative information content of equity method and proportionally consolidated financial statement amounts for explaining market risk.



The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected.Note: This section has been updated to reflect the amendments to IFRS 11 made in June 2012.


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