Which Statement Is Correct About Joint Arrangements

question 107

Multiple Choice

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.

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Definitions:

Total Sales

The sum of all revenue generated from the sale of goods or services in a specific period before any deductions.

Exclusive Franchise

A licensing agreement giving a single franchisee the right to be the only provider of the franchisor's product or service in a specific geographical area.

Variable Selling

Variable selling refers to the costs associated with selling products that vary with the level of sales activities, such as commissions and shipping expenses.

Administrative Expense

Costs related to the general operation of a business, including executive salaries, legal and financial fees, and other overhead costs.