Separate Financial Statements of a Venturer
Separate Financial Statements of a Venturer
25. A venturer should prepare and disclose its interest in a joint venture in its separate financial statements in accordance with the cost method.
Consolidated Financial Statements of a Venturer
26. Where a venturer is to consolidate its financial statements, the venturer should report in its consolidated financial statements its interest in a jointly controlled entity using the equity method.
27. A venturer should discontinue the use of the equity method from the date on which it ceases to have joint control over or clases to maintain significant influence on a jointly controlled entity.
Exceptions to the Equity method:
28. A venturer should account for the following interests in accordance with the cost method:
(a) an interest in a jointly controlled entity which is acquired and held exclusively with a view to its subsequent disposal in the near future, normally 12 months; and
(b) an interest in a jointly controlled entity which operates under severe long-term restrictions that significantly impair its ability to transfer funds to the venturer.
29. The use of the equity method is inappropriate when the interest in a jointly controlled entity is acquired and held exclusively with a view to its subsequent disposal in twelve months. It is also inappropriate when the jointly controlled entity operates under severe long-term restrictions which significantly impair its ability to transfer funds to the venturer.
30. From the date on which a jointly controlled entity becomes a subsidiary of a venturer, the venturer accounts for its interest in accordance with VAS 25, Consolidated Financial Statements and Accounting for Investments in Subsidiaries.
Transactions between a Venturer and a Joint Venture
31. When a venturer contributes or sells assets to a joint venture, recognition of any portion of a gain or loss from the transaction should reflect the substance of the transaction.
Tin liên quan
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GIẤY PHÉP THÀNH LẬP VĂN PHÒNG ĐẠI DIỆN (TT)
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The duration of authorization of each representative, including the beginning date;
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Responsibilities of the enterprise’s legal representative
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Reporting changes to information about the enterprise’s manager
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Criteria, rights and obligations of social enterprises
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Do accounting, make and submit truthful financial statements in a timely manner according to regulations of law on accounting and statistics.
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State assurance about enterprises and owners of enterprises
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Subsidiaries are related person of the parent company in the same group
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Application of the Law on Enterprises and specialized laws
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Acceptance of leased goods