A consideration of the pertinent legal and commercial features of unincorporated joint ventures reveals some accounting and disclosure issues that are not adequately dealt with by existing accounting standards or disclosure rules. In addition, a review of current practice reveals major deficiencies in reporting the financial results of investments in joint ventures. Some deficiencies, especially the disclosure of contingent liabilities, may be in breach of the requirements of the Companies Act, 1961. Our conclusion on accounting methods is that the equity method is to be preferred to the more popular proportionate consolidation method.
|Number of pages||20|
|Journal||Accounting & Finance|
|Publication status||Published - 1980|