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CA Inter AS 27 Financial Reporting of Interests in Joint Ventures — practice questions

Explore 49 free AS 27 Financial Reporting of Interests in Joint Ventures questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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AS 27 Financial Reporting of Interests in Joint Ventures questions and exercises with answers

Showing questions 1–30 of 49.

AS 27 defines a joint venture as a contractual arrangement under what?Read the answer and worked solution →In AS 27, what is joint control?Read the answer and worked solution →Which party to a joint venture has joint control over it?Read the answer and worked solution →Proportionate consolidation shows what as separate line items?Read the answer and worked solution →How many broad types of joint venture does AS 27 identify?Read the answer and worked solution →Which feature is common to all joint ventures under AS 27?Read the answer and worked solution →What separates a joint venture from an investment in an associate?Read the answer and worked solution →A joint venture entity that is also an AS 21 subsidiary is treated how?Read the answer and worked solution →A joint venture contract normally deals with which matter?Read the answer and worked solution →What does the joint venture contract ensure about control?Read the answer and worked solution →The operator or manager of a joint venture acts within policies agreed by whom?Read the answer and worked solution →A jointly controlled operation uses what, not a new entity?Read the answer and worked solution →Which is the standard's example of a jointly controlled operation?Read the answer and worked solution →In jointly controlled operations, a venturer recognises what?Read the answer and worked solution →Do consolidated statements need extra adjustments for jointly controlled operations?Read the answer and worked solution →Must a jointly controlled operation keep separate accounting records?Read the answer and worked solution →An oil pipeline jointly controlled by several producers is an example of what?Read the answer and worked solution →In a venturer's books, a share of a jointly controlled pipeline is classified as what?Read the answer and worked solution →For jointly controlled assets, how does a venturer classify its share of the assets?Read the answer and worked solution →What is a jointly controlled entity?Read the answer and worked solution →Who controls the assets and earns the income of a jointly controlled entity?Read the answer and worked solution →A jointly controlled entity prepares financial statements in what way?Read the answer and worked solution →In a venturer's separate statements, an interest in a jointly controlled entity is accounted for under which standard?Read the answer and worked solution →Rs 5 lakh paid into a jointly controlled entity is shown how in separate books?Read the answer and worked solution →A jointly controlled entity held for near-term sale is accounted for how?Read the answer and worked solution →What excludes an entity from proportionate consolidation?Read the answer and worked solution →Ordinarily, 'near future' for disposal means not more than how long from acquisition?Read the answer and worked solution →The intention to dispose of an interest is judged at what time?Read the answer and worked solution →Proportionate consolidation adds the venturer's share of what?Read the answer and worked solution →A venturer holds 40% of a jointly controlled entity whose inventory is Rs 50 lakh. What inventory is added in consolidation?Read the answer and worked solution →

Worked practice questions

AS 27 defines a joint venture as a contractual arrangement under what?

  1. Full ownership
  2. Sole control
  3. Joint control
  4. Group dominance
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Correct answer: C. Joint control

A joint venture exists only when two or more parties undertake an economic activity that is subject to joint control by contract.

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In AS 27, what is joint control?

  1. Control held by a single parent entity
  2. Power to veto all board decisions
  3. Contractually agreed sharing of control
  4. Influence over policy decisions only
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Correct answer: C. Contractually agreed sharing of control

Joint control rests on a contract that shares control of an economic activity among the venturers, so no one party controls it alone.

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Which party to a joint venture has joint control over it?

  1. Investor
  2. Venturer
  3. Operator
  4. Associate
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Correct answer: B. Venturer

A venturer is by definition a party that holds joint control, unlike an investor who is a party without joint control.

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More Accounting topics

AS 3 Cash Flow StatementSchedule III Division I Financial StatementsAS 19 LeasesValuation of Inventories (AS 2)AS 22 Taxes on IncomeAS 28 Impairment of AssetsProperty, Plant and EquipmentAS 17 Segment Reporting