So the company is owned by 3 companies, which in my understanding should be a joint venture. Shall we use proportionate instead of consolidation method?作者: evolsteevol 时间: 2013-4-22 06:22
btw, what does consolidation method mean? It seems to be acquisition method according to the answer作者: hardwork24 时间: 2013-4-22 06:23
no, in a joint venture you have JOINT CONTROL
consolidation = acquisition method.
since Cupercino has CONTROL, not JOINT CONTROL , you use Ac. Method.
the other are equity since they do not have joint control or control. anyway since it’s a US GAAP probleme even if they had JOINT control they would have been consolidated with Equity method作者: towardsutopia21 时间: 2013-4-22 06:23
I see. thanks!!作者: tarunajwani 时间: 2013-4-22 06:24
Joint control is usually a 50%/50% split between 2 companies. However, this control could be shared equally 1/3 between 3 investors, 1/4 between 4 investors etc作者: amqata 时间: 2013-4-22 06:24
so joint venture can have作者: JonnyKay 时间: 2013-4-22 06:25
