Method of Accounting for Joint Venture Business

Introduction
Joint venture business is a type of business where two or more parties come together to carry out a specific business project. The parties involved in the joint venture business share the profits and losses of the project. In such a business, it is crucial to determine the method of accounting to be followed to record the transactions of the project.

Methods of Accounting
There are different methods of accounting that can be followed in a joint venture business. These methods include:

a) Separate Act for J.V.
A separate act for joint venture business means that the parties involved in the project will prepare a separate act that will govern the accounting procedures to be followed. In this method, the parties have the flexibility to decide the accounting policies that will be suitable for their project.

b) Accounting Standard
Accounting standard is a set of guidelines that provide a framework for preparing financial statements. In this method, the parties involved in the project will follow the accounting standard issued by the Institute of Chartered Accountants of India (ICAI) or any other regulatory body.

c) Co-venturer as per their convenience
In this method, each co-venturer will maintain its books of accounts as per its convenience. The parties involved in the project can agree to this method, but it may lead to inconsistency in the financial statements of the project.

d) ICAI
ICAI is a regulatory body that sets accounting standards and guidelines for the preparation of financial statements. The parties involved in the project can follow the accounting standards issued by ICAI to record the transactions of the project.

Conclusion
In conclusion, the method of accounting to be followed in a joint venture business can be decided by the parties involved in the project. It is essential to choose a method that will provide consistency in the financial statements of the project. The parties can decide to follow the accounting standard issued by ICAI or any other regulatory body, or they can prepare a separate act that will govern the accounting procedures of the project.

BECAUSE like partnership act
company act
there s no act for Jv so
coventures decide!!