Three entities. JV, parent(P) and ultimate parent (U).
The JV is owned 50% by the parent which in turn is owned 100% by the ultimate parent. How is the JV reflect in the Ultimate parent books? In U should we show the share of the JV's gross assets and share of gross liabilities (gross equity style) or because the JV should have been gross equity acounted for in P when we consolidate P the assets and liabilities of the JV get rolled up into those of the group and not seperately shown? Is this covered in any standard.
Replies (4)
Please login or register to join the discussion.
FRS 9
Not sure what standards your co is preparing from but FRS9 is/was the definitive std.
IMHO the U should still show share Gross asset / Gross liability.
Sorry just getting back
I'm no expert and have followed the advice we are offered by our Auditors - (one of the biggies).
I think it. the reader of the overall holding Co has to be aware that JVs are included in the balance sheet so netting out destroys the visibility. Para 21
Edit - can't get this to fit - hope it's legible