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Consolidation of JV

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Prashant Agarwal

1 Points Posted on 22 November 2022

hi,
I have a investment in JV by 25%stake, now I am preparing my consolidation, how to do consolidation of same, whether asset or liability will be proportionally consolidate or only profit from JV will be merged (Kindly answer as per Indas perspective)

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Quick Summary

This discussion explores how to consolidate a Joint Venture (JV) investment under INDAS accounting standards. It delves into whether assets and liabilities should be proportionally consolidated or if only profits are merged. The advice leans towards the equity method for investments where significant control exists, otherwise treating it as a normal financial instrument investment. Profits from JVs are typically reported just above Profit Before Tax (PBT).

Yasaswi Gomes new

Finance

4592 Points Posted on 22 November 2022

There is a lot in jv accounting. Its equity method of accointing and measure invesment at cost of onr has signofocant control or else, one has to report it as normal investment as per financial instruments ive tried hard to find out how progit but my book doesnt have good examples.

Yasaswi Gomes new

Finance

4592 Points Posted on 23 November 2022

I cant conform about the profit repoting, but looks like we have to report profit from jv, associates just above pbt. Because for everything, indas follows accounting associates in the equity method.