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In the case of Jointly Controlled Entities (JCE) (Joint Ventures), how the venturer records its books...

In the case of Jointly Controlled Entities (JCE) (Joint Ventures), how the venturer records its books of interest in the joint venture:
a. Using the equity method
b. Recognizes assets and liabilities, expenses and income related to ownership in Jointly Controlled Entities (JCE)
c. Present the shares of assets that are jointly controlled, any liabilities that occur together, and any income or expenses related to ownership in the Jointly Controlled Entity (JCE)
d. By using the purchase accounting method

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Answer #1
  • Option (c) is correct.
  • Under proportionate consolidation, the balance sheet of the venturer includes its share of the assets that it controls jointly and its share of the liabilities that occur together.
  • The income statement of the venturer includes its share of the income and expenses related to the ownership in the jointly controlled entity.
  • In the case of Jointly Controlled Entities (JCE) (Joint Ventures), the venturer records its books of interest in the joint venture as: Present the shares of assets that are jointly controlled, any liabilities that occur together, and any income or expenses related to ownership in the Jointly Controlled Entity (JCE).

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