An investor who holds joint control over an entity has the option of consolidation accounting under AASB 127 or one of the accounting techniques allowed under the joint ventures accounting standard.

Question

Quizplus · Accepted Answer

An investor with joint control over an entity should account for its interest using the equity method in accordance with AASB 11 Joint Arrangements, not AASB 127 Consolidated and Separate Financial Statements, which deals with the consolidation of subsidiaries, not joint arrangements.

An Investor Who Holds Joint Control Over an Entity Has