Loans to jointly controlled operations
Two entities A and B each own half of a jointly controlled operation. Entity A has lent €400 to the jointly controlled operation, while entity B has lent €300. How should entity A account for its loan?
The jointly controlled operation has total borrowings of €400 + €300 = €700. A’s share in the borrowings of €350 =50% of €700) should be offset against its receivable of €400. Entity A should, therefore, account for a net receivable from its joint venture partner of €50 =€400 €350).
The jointly controlled operation is not a separate legal entity and under the joint venture agreement A has a business relationship only with B. Gross presentation of a receivable of €200 =€400 50% of €400) and a liability of €150 =50% of €300) would therefore not be appropriate.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
