Reporting Interests in Joint Ventures in the Financial Statements of an Investor

Reporting Interests in Joint Ventures in the Financial Statements of an Investor

accounting-services-in-vietnam234. An investor in a joint venture, which does not have joint control, should report its interest in a joint venture in accordance VAS, Financial Instruments: Recognition and Measurement, or, if it has significant influence in the joint venture, in accordance with VAS 07, Accounting for Investments in Associates.

Disclosure

35. A venturer should disclose the aggregate amount of the following contingent liabilities, unless the probability of loss is remote, separately from the amount of other contingencies:

(a) any contingent liabilities that the venturer has incurred in relation to its interests in joint ventures and its share in each of the contingencies which have been incurred jointly with other venturers;

(b) its share of the contingent liabilities of the joint ventures themselves for which it is contingently liable; and

(c) those contingent liabilities that arise because the venturer is contingently liable for the liabilities of the other venturers of a joint venture.

36. A venturer should disclose the aggregate amount of the following commitments in respect of its interests in joint ventures separately from other commitments:

accounting-services-in-vietnam1(a) any capital commitments of the venturer in relation to its interests in joint ventures and its share in the capital commitments that have been incurred jointly with other venturers; and

(b) its share of the capital commitments of the joint ventures themselves

37. A venturer should disclose a listing and description of interests in significant joint ventures held in jointly controlled entities.

38. A venturer which does not issue consolidated financial statements, because it does not have subsidiaries, should disclose the information required in paragraphs 35, 36 and 37.

39. It is appropriate that a venturer which does not prepare consolidated financial statements because it does not have subsidiaries provides the same information about its interests in joint ventures as those venturers that have subsidiaries.