1. Chapter 30 Joint Venture Arrangements

2. Lecture Topics Structures and characteristics
Accounting for joint ventures
Compatibility with international accounting standards
Disclosure

3. Lecture References
Text - Chapter 30
AASB

4. Key Concepts Joint venture Management agreement Shared control Agency
Good faith
Joint tenancy

5. Structures and Characteristics
The insignificance of names
Major common characteristics
Joint venture agreement
Management agreement
Number of participants
Contributions
Finite life

6. Structures and Characteristics
Shared control
The structures
Partnership joint ventures
Agency
Good faith
Joint tenancy
Incorporated joint ventures

7. Structures and Characteristics
The structures
Joint venture operations
Liability
Fiduciary obligations
Joint venture assets

8. Joint Ventures
Joint Venture
Entities
Joint Venture
Operations
Joint Venturer
Partnership
Other Joint Venture
Entities

9. Structures and Characteristics
Distinguishing the structures
Status
Impermanence
In common
Separate ventures
Profit sharing

10. Structures and Characteristics
Distinguishing the structures
Product sharing
Business undertaking
Special purpose entities

11. Structures and Characteristics
Review of joint venture operations
Definition problems
Flexibility
Taxation

12. Accounting for Joint Ventures
Incorporated and partnership structures
The venture
The venturers
Each reports own interest
One-line mode
Off-balance problems

13. Accounting for Joint Ventures
Accounting for joint venture operations
Accounting records
Contribution received
Costs incurred
Production output
Assets and liabilities held

14. Accounting for Joint Ventures
Accounting for joint venture operations
Disclosure
Joint venture operations
Joint venture entities
General
AASB 1040 disclosures

15. Accounting for Joint Ventures
Accounting for joint venture operations
Line-by-line method
Each venturer takes a/c of its share of each venture asset, cost and liability for which there is shared responsibility

16. Accounting for Joint Ventures
Application of methods to a production joint venture
Determination of:
Cost of assets
Amounts to charge for asset use/consumption

17. Accounting for Joint Ventures
Transactions between venturers
Assets transferred at fair value
Profit/loss if different to carrying value in contributor’s books
Compatibility with IAS 31

18. Joint Ventures
Jointly
Controlled
Operations
Venturers’ own and consolidated
accounts - cost method
Jointly
Controlled
Assets
Venturers’ own and consolidated
accounts - line by line method
Jointly
Controlled
Entities
Venturers
Investors

19. Other Considerations Service contributions Non-monetary assets
Contribution not proportional to share of costs and output
Liquidity

20. Where to get more information
Other courses
List books, articles, electronic sources