Please help. In Lyon's accounts do they show a) the proportion of Revenue (12m) & Expenses (10M)? Or b) does it show just one entry, ie. DR Receivable 2m, CR Profit 2m? It's not clear. If it's a) then why produce a SPL? Who is it for? Which books does that appear in?
Very good explanation of joint venture and joint operation. The key difference is joint venture is a separate company. When I first read IFRS 11 I didn't understand clearly the definitions of joint venture and operation cos it says a joint control of net assets of arrangement. It doesn't state it's a separate entity.
His explanation is rather confusing to me IFRS 11.B19 says that " A joint arrangement In which the assets and liabilities relating to the arrangement are held in a separate vehicle (separate company) can be either a joint venture or joint operation" to determine which one it is one should further assess the legal form, terms of the contractual arrangement and other facts and circumstances to be able to conclude if it is a joint venture or joint operation. The lecture here is sounding to me like he is saying is if is a separate vehicle ( separate company) then it a joint venture.
@@ShonaM2023 Yes you're right. I was in the process of learning it. So after watching this video I also went to read some articles about IFRS 11. Turns out joint venture can turn to joint operation if contractual arrangement, facts and circumstances indicate it is in fact a joint operation so even legal and structure is a separate entity, it can in fact be a joint operation after looking at contractual arrangement, facts etc. I think the lecturer just gives a simplified example here but could be misunderstood by learners.
I also think so. (600) is depreciation of ppe, 2600 - receivable (the total balance increased by 2000), and it is related to RE which increased by 2000
