Page 23 - PowerPoint Presentation

JOINT ARRANGEMENTS

Basic Example 1

• As a separate entity is not established and each

entity has direct rights to a specified percentage of

certain assets. Each entity can have differing rights

to and percentages of other assets, and different

obligations for various liabilities.

• Each company includes its share of the

development costs, assets and liabilities and

income and expenses from the sale of the package

in the agreed upon ratio in its separate annual

financial statements, because the arrangement is a

joint operation.

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