Where the venturer has transferred the significant risks and rewards of ownership

accounting-services-in-vietnam2Where the venturer has transferred the significant risks and rewards of ownership, the venturer should recognise only that portion of the gain or loss which is attributable to the interests of the other venturers.

The venturer should recognise the full amount of any loss when the contribution provides evidence of a reduction in the net realisable value of current assets or the net book value of fixed assets.

32. When a venturer 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.

Where a venturer has transferred the reward of ownership and the assets are retained by the joint venture without selling to an independent third party, the venturer should recognise only that portion of the gain or loss which is attributable to the interests of the other venturers.

Where the joint venture resells the assets to an independent third party, the venturer is entitled to recognise that portion of the actual gain or loss which is arise from the sale of asset to Joint Venture.

The venturer should recognise the full amount of any loss when the sale provides evidence of a reduction in the net realisable value of current assets or net-book value of fixed assets.

accounting-services-in-vietnam133. When a venturer purchases assets from a joint venture, recognition of any portion of a gain or loss from the transaction should reflect the substance of the transaction.

The venturer should not recognise its share of the profits of the joint venture from the transaction until it resells the assets to an independent party.

Where the venturer sells the assets to an independent third party, the venturer is entitled to recognise that portion of the actual gain attributable to its interests in the joint venture.

A venturer should recognise its share of the losses resulting from these transactions in the same way as profits except that losses should be recognised immediately when they represent a reduction in the net realisable value of current assets or the net-book value of fixed assets.