The one-line method of accounting for joint ventures is not permitted under AASB 11.

Question

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AASB 11 requires the use of the equity method to account for joint ventures, which involves recognizing the joint venture as an investment and recording the investor's share of the joint venture's profits or losses. The one-line method, which simply records the joint venture as a single line item in the financial statements, is not permitted under AASB 11.

The One-Line Method of Accounting for Joint Ventures Is Not