Name: John Bernard C.

Mejia

University of Luzon
College of Accountancy

ACC316
2nd semester 2020-2021

RESEARCH WORK

INSTRUCTION: Download a copy of PFRS for Small Entities and PFRS for SMEs as your
resource materials. Compare Accounting for Joint Arrangements of PFRS 11 with Accounting for
Joint Venture under PFRS for SEs and SMEs. Provide a distinction, at least, for the following
dimensions: Definition, Types of joint arrangements/joint venture, Accounting methods.

Attach in the google classroom no later than 23:59 march 2, 2021

ANSWER:

PFRS 11: Accounting PFRS for Small PFRS for SMEs:

for Joint Entities: Accounting Accounting for Joint
Arrangements for Joint Venture Venture

DEFINITION Joint arrangement is an Joint arrangement is an Joint venture is a

arrangement of which
two or more parties
have joint control.
arrangement of which contractual arrangement
two or more parties where two or more
have joint control. parties undertake an
economic activity that
is subject to joint
control.

TYPE 1. Joint operation is a 1. Joint operation is a Jointly controlled

joint arrangement
whereby the parties that
have joint control of the
arrangement have rights
to the assets, and
obligations for the
liabilities, relating to the
arrangement. Those
parties are called joint
operators.
2. Joint Ventureis a
joint arrangement
whereby the parties that
have joint control of the
arrangement have rights
to the net assets of the
arrangement.Those
parties are called joint
venturers.
joint arrangement operations are the
whereby the parties that operations of some joint
have joint control of the ventures involving the
arrangement have rights use of the assets and
to the assets, and other resources of the
obligations for the ventures rather than the
liabilities, relating to establishment of a
the arrangement. Those corporation, partnership
parties are called joint or other entity, or a
operators. financial structure that
2. Joint Ventureis a is separate from the
joint arrangement ventures themselves.
whereby the parties that Jointly controlled
have joint control of the assetssome joint
arrangement have rights venture involve the
to the net assets of the joint control, and often
arrangement.Those the joint ownership, by
parties are called joint the venturers of one or
venturers. more assets contributed
Name: John Bernard C. Mejia

to, or acquired for the

purpose of, the joint
venture and dedicated
to the purposes of the
joint venture
Jointly controlled
entity is a joint venture
that involves the
establishment of a
corporation,
partnership, or other
entity in which each
venturer has an interest.

ACCOUNTING Joint Operationthe Joint Operationthe The accounting for

METHODS operators have the operators have the jointly controlled assets
rights to assets and rights to assets and and jointly controlled
obligations for the obligations for the operations is similar to
liabilities. They also liabilities. They also accounting for joint
account for the assets, account for the assets, operations. For a
liabilities, revenues and liabilities, revenues and controlled entity, either
expenses according to expenses according to one of the following
the contractual the contractual methods may be used to
arrangement. arrangement. account for the
investment: the equity
method, the cost
method, or the fair
value method.
Name: John Bernard C. Mejia