stalkey

Thanks it makes a little bit of sense, but can I perhaps ask you one more clarification?

It seems to me that you are saying if a parent company has a control over JV, that parent company must use acquisition method not proportionate consolidation. However, if you look at Schwesser pg 85, the parent company that follows IFRS still uses proportionate consolidation when it owns 80% of the JV.

I guess I am more confused by the fact that neither CFA text or Schwesser addressed control issues within JV structure.

Lastly, where does it state that you must use equity method over proportionate consolidation when there is a significant influence? I haven't come across that yet....



Edited 1 time(s). Last edit at Monday, May 30, 2011 at 10:00PM by pkim182.