Which statement is correct about joint arrangements?
A)IFRS distinguishes between joint operations and joint ventures.
B)IFRS uses the terms joint operations and joint ventures inter-changeably.
C)IFRS permits either the proportionate consolidation method or equity method.
D)IFRS permits only the equity method.

Question

Quizplus · Accepted Answer

IFRS distinguishes between joint operations, where two or more parties have rights to the assets and obligations for the liabilities of the arrangement, and joint ventures, where two or more parties have joint control over the arrangement and share the assets, liabilities, revenues, and expenses. IFRS provides guidance on accounting for both joint operations and joint ventures, including the use of either the proportionate consolidation method or equity method for joint ventures.

Which Statement Is Correct About Joint Arrangements