updating kitchen cabinets yourself - Consolidating joint ventures under gaap
If the joint venture is a VIE, the accounting model discussed in the above section, “Special purpose entities”, is applied.
If the joint venture is not a VIE, venturers apply the equity method to recognize the investment in a jointly controlled entity.
The investor, on acquisition of the investment, accounts for the difference between the cost of the acquisition and investor’s share of fair value of the net identifiable assets as goodwill.
As such, it is possible for the fair value of the equity method investment to be below its carrying amount, as long as that decline is temporary.
If an other-than-temporary impairment is determined to exist, the investment is written down to fair value.
US GAAP does not include unincorporated entities, although these would generally be accounted for in a similar way.
Equity Method IFRS: An investor accounts for an investment in an associate using the equity method.
Types of Joint Venture IFRS: Distinguishes between three types of joint venture: US GAAP: Only refers to jointly controlled entities, where the arrangement is carried on through a separate corporate entity.
Jointly Controlled Entities IFRS: Either the proportionate consolidation method or the equity method is allowed.
US GAAP: Similar to IFRS if the equity method is applied.
In addition, an entity can elect to adopt the fair value option for any of its equity method investments.
US GAAP: The investor’s financial statements do not have to be adjusted if the associate follows an acceptable alternative US GAAP treatment, although it would be acceptable to do so.
Impairment IFRS: If the investor has objective evidence of one of the indicators of impairment set out in IAS 39.59 for example, significant financial difficulty impairment is tested as prescribed under IAS 36, Impairment of Assets.
Definition IFRS: An associate is an entity over which the investor has significant influence – that is, the power to participate in, but not control, an associate’s financial and operating policies.Tags: Adult Dating, affair dating, sex dating