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Joint Venture Investments

Sometimes a small group of investors will own and operate a business entity; this entity is a joint venture.

US GAAP & Joint Ventures: most often, the equity method of accounting is required.

IFRS & Joint Ventures: prior to early 2009 both the proportionate consolidation and equity accounting methods were allowed for joint ventures under IFRS. This was changed and now only the equity method is permitted for companies that must report joint venture business activities.

Previous Lesson

Minority Active Investments and the Equity Method for Financial Reporting

Controlling Interest Investments: Accounting for Business Combinations

Financial Reporting Part 2

30 lessons

CFA Level 2: Financial Reporting Part 2 – Introduction

Intercorporate Investments Accounting - Ownership Categories

Minority Passive Investments – Accounting Classes

Minority Active Investments and the Equity Method for Financial Reporting

Joint Venture Investments

Controlling Interest Investments: Accounting for Business Combinations

Purchase Method of Accounting for Controlling Interest Investments or Acquisitions

Pooling of Interests Method to Account for Controlling Interest Investments

Purchase Method vs. Pooling of Interest Method

Acquisition Method to Account for Controlling Interest Investments

GAAP Purchase Method, IFRS Purchase Method, and GAAP Acquisition Method Accounting

Variable Interest Entities (VIEs) and Special Purpose Entities (SPEs)

Defined Benefits Plans vs. Defined Contribution Plans

Measuring the Defined Benefit Obligation

Pension Expense (both GAAP & IFRS) for the Income Statement

Defined Benefit Plans & the Company Balance Sheet

The Role of Actuarial Assumptions in DB Plan Accounting

Economic Pension Expense

Pensions and the Statement of Cash Flows

Accounting for Stock (or Share) Based Compensation

Financial Statement Consolidation of Multinational Operations

Consolidation: Presentation Currency vs. Functional Currency vs. Local Currency

Foreign Currency Translation

Temporal Method for Translation of Foreign Statements

Current Rate Method for Translation of Foreign Statements

Consolidating Financial Statements: Determining the Functional Currency

Translation Methods and Financial Statement Effects

Accounting for Subsidiaries in Hyperinflationary Economies

CFA Level 2: Financial Reporting 2 - Recommendations

MBS Weighted Average Life

Topics

Financial Analysis