The Line by Line Method of Accounting for Interests in Jointly

question 10

Multiple Choice

The line by line method of accounting for interests in jointly controlled entities is recommended by AASB131 because:

• A) it reflects the venturer's control over the future economic benefits
• B) it is the method used for jointly controlled operations and jointly controlled assets which only differ from jointly controlled entities in their legal form
• C) it is consistent with the legal form of a joint arrangement
• D) none of the above

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Definitions:

Diaphysis

The shaft or central part of a long bone.

Epiphyseal Lines

The remnants of the epiphyseal plate (growth plate) in long bones, indicating where bone growth occurred.

Articular Cartilage

A creamy, white covering on the ends of bones at junctions, designed to lower friction and absorb impact.

Epiphysis

The end part of a long bone, which is initially growing separately from the shaft.