Home › CA Final › financialreporting › Ind AS 111 — Joint Operation Accounting, Acquisition of Interest as Business & AS 27 vs Ind AS 111 › AS 27 classified joint ventures into THREE categ…
AS 27 classified joint ventures into THREE categories: jointly controlled operations, jointly controlled assets, jointly controlled entities. Under Ind AS 111:
AAll three categories continue
BOnly joint ventures and associates exist
CAll such arrangements are now subsidiaries
DJointly controlled operations and jointly controlled assets become 'joint operations'; jointly controlled entities become either 'joint operations' or 'joint ventures' depending on rights/obligations test
Answer & Solution
Correct answer: D. Jointly controlled operations and jointly controlled assets become 'joint operations'; jointly controlled entities become either 'joint operations' or 'joint ventures' depending on rights/obligations test
The two-bucket Ind AS 111 model classifies based on substance (rights to assets/obligations for liabilities vs rights to net assets). AS 27's JCOs and JCAs map straight to joint operations; AS 27's JCEs map to either, depending on the substance test.
Related questions
Identify the statement that is INCORRECT about acquiring an interest in a joint operation Identify the BEST description of how a joint operator accounts for its interest in a jointWhen an entity contributes ONLY ASSETS or GROUPS OF ASSETS THAT DO NOT CONSTITUTE BUSINESSAS 27 provided an exemption from proportionate consolidation when the joint venture was 'aWhen a party that previously merely PARTICIPATED in a joint operation (no joint control) sSale BY a joint operator TO its joint operation: when the transaction provides evidence ofWhere the transaction acquiring an additional interest in a joint operation (which is a buA Ltd. has 60% interest in a joint operation. A Ltd. PURCHASES an asset from the JO; the J