ICAI Notes- Unit 3: Accounting Standards for Consolidated Financial Statements | Advanced Accounting for CA Intermediate PDF Download

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ACCOUNTING STANDARDS FOR CONSOLIDATED 
FINANCIAL STATEMENTS 
 
    
 10.131 
 
 
 
 
 
LEARNING OUTCOMES 
 UNIT 3: ACCOUNTING STANDARD 27 
FINANCIAL REPORTING OF INTERESTS  
IN JOINT VENTURES 
 
 
 
After studying this unit, you will be able to: 
? Define ‘Joint venture’ ‘joint Control’, ‘control’, ‘venturer’ and investor. 
? Appreciate different forms of joint venture 
? Examine the contractual arrangements which will differentiate the 
control as of Associate or Joint venture 
? Evaluate the nitty-gritty of different forms of Joint ventures and 
differentiate among them 
? Present the separate and consolidated financial statements of the 
venturers 
? Accounting for transactions between the venturer and Joint venture  
? Comply with the disclosure requirements as stated in the standard. 
 3.1 INTRODUCTION 
You would have come across many examples where 2 or more entities would have 
worked together to achieve a certain purpose. Hindustan Unilever Ltd (HUL), Tata 
Starbucks Ltd, Tata SIA Airlines Ltd. (Vistara), etc. are a few popular examples of 
Joint Ventures. Entities enter into such arrangements considering sharing of risk 
and expense, collaboration of know-how and skill-set, while also impacted by 
different work-cultures and management style. Depending on the contractual 
arrangement, the accounting and reporting for Joint Ventures is done. 
AS 27, came into effect in respect of accounting periods commenced on or after 
01.04.2002.This standard set out principles and procedures for accounting of 
interests in joint venture and reporting of joint venture assets, liabilities, income 
© The Institute of Chartered Accountants of India