Joint Arrangements

Question 1

Joint Operation

Answer 1

parties have rights to assets and obligations for liabilities of joint arrangement

Question 2

Joint Venture

Answer 2

parties have rights to only the net assets of the joint arrangement

Question 3

Accounting for a Joint Operation

Answer 3

no investment account

investor’s interests recorded directly on financial statement

Question 4

Accounting for a Joint Venture

Answer 4

Equity method