alleryStart learning →What does the joint venture contract ensure about control?
AOne venturer decides alone
BNo venturer controls alone
COperator holds all say
DA court order for decisions
Answer & Solution
Correct answer: B. No venturer controls alone
The contract is meant to prevent any one venturer from controlling the activity on its own, which is what makes the control joint.
Keep practising AS 27 Financial Reporting of Interests in Joint Ventures
Browse all AS 27 Financial Reporting of Interests in Joint Ventures questions for CA Inter, or explore more Accounting topics.
Related questions
For jointly controlled entities, a venturer must disclose which item?How are joint venture capital commitments disclosed?AS 27 disclosure of contingent liabilities is not needed when the probability of loss is wFor which statements is AS 27 mandatory in respect of an enterprise?How does the joint venture itself account for the operator's management fee?Fees earned by an operator of a joint venture are accounted for under which standard?Which standard is used to test impairment in venturer and venture transactions?A loss on purchase from a venture is booked at once when it shows what?