Lesson 3 P2: Joint Arrangements - Notes

Joint Arrangements = 2 or more parties have joint control

Types of Joint Arrangements
1. Joint Operation = joint control over assets and liabilities
        *Accounting for Joint Operation
           a. Separate records = similar to equity method             

          b. No separate records = maintain a capital account           

2. Joint Venture = joint control over net assets
        *Accounting for Joint Venture = Equity Method