A Venturer That Recognises in Its Financial Statements the Assets

question 16

Multiple Choice

A venturer that recognises in its financial statements the assets that it controls,the liabilities it incurs,the expenses that it incurs and its share of the income that it earns from the sale of goods or services by the joint venture is prescribed by AASB 11 for which type(s) of joint venture(s) ?

• A) jointly controlled entities
• B) jointly controlled assets
• C) joint operations
• D) jointly controlled assets and jointly controlled operations

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Definitions:

Noncontrolling Interest

A portion of equity in a subsidiary not attributed to the parent company, representing the minority shareholders' share of the assets and earnings.

Net Income

A company's total earnings or profit, calculated as revenues minus expenses, taxes, and the cost of goods sold.

Partial Equity Method

An accounting treatment used for investments where the investor has significant influence but does not control the investee, recognizing income to the extent of dividends received and changes in the investee's equity.

Noncontrolling Interest

The portion of equity interest in a subsidiary not attributable directly or indirectly to the parent company.