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  • Joint Agreement

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    Master GT
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    This document outlines the key differences between a joint operation and a joint venture. A joint operation involves joint control through a contract but the parties have rights to the assets and obligations for the liabilities of the arrangement. It can be set up similarly to a partnership with unlimited liability. A joint venture sets up a separate legal entity and the parties have rights to the net assets of the venture. It is set up as a corporation with limited liability and the parties account for their interest using the equity method.

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    AFAR Joint Agreement

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    This document outlines the key differences between a joint operation and a joint venture. A joint operation involves joint control through a contract but the parties have rights to the assets and obligations for the liabilities of the arrangement. It can be set up similarly to a partnership with unlimited liability. A joint venture sets up a separate legal entity and the parties have rights to the net assets of the venture. It is set up as a corporation with limited liability and the parties account for their interest using the equity method.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    7 views2 pages

    Joint Agreement

    Uploaded by

    Master GT
    This document outlines the key differences between a joint operation and a joint venture. A joint operation involves joint control through a contract but the parties have rights to the assets and obligations for the liabilities of the arrangement. It can be set up similarly to a partnership with unlimited liability. A joint venture sets up a separate legal entity and the parties have rights to the net assets of the venture. It is set up as a corporation with limited liability and the parties account for their interest using the equity method.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Joint Agreement

     Two or more parties


     Joint Control
    o Contract
    o Unilateral consent of Relevant activities

    Joint Operation

     Accounted Under PFRS 11


     Parties have:
    o Rights to Assets of the arrangement
    o Obligation to liabilities of the arrangements
    o NOTE: Assets – Liabilities = Net Assets
     Parties: Joint Operators
     With or without structured through a separate vehicle
     Setup: Similar to partnership setup
    o Unlimited Liabilities
    Accounting

    Cost and Expenses Contra Cost and Expenses


     Merchandise purchases  Purchase return, discount,
     Merchandise contribution allowances
     Expenses
    Contra Revenue and Gains Revenue and Gains
     Sales discount, allowances, return  Sales

     Debit > Credit = Loss


    Debit < Credit = Income

    Joint Venture

     Accounted Under PAS 28 (Equity Method)


     Parties have
    o Rights to net assets
     Parties: Joint Venturers
     Always structured with a separate vehicle
     Setup: Corporation
    o Limited Liabilities
     Accounting
    EQUITY METHOD

    Beginning Balance / Acquisition Cost Dividends


    Share in Net Income Share in Net Loss
    Share in Increase in OCI Share in Decrease in OCI
    Share in Decrease in OCI Share in Increase in OCI
    Impairment Recovery Impairment Loss of investment
    Separate Vehicle

     Separately identifiable financial structure


     Scope is greater than the entity

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