Which of the following statements is incorrect?
A) Accounting records do not need to be prepared for the joint operation itself.
B) Accounting for a joint venture is the same as that of a joint operation.
C) AASB 11/IFRS 11 Joint Arrangements do not provide standards on accounting for the joint operation itself.
D) The statement of financial position is the joint operation's main financial statement.

Question

Quizplus · Accepted Answer

Accounting for a joint venture and a joint operation are two different things. A joint venture is a separate entity created by the parties involved, while a joint operation involves the parties jointly controlling assets and liabilities. Therefore, the accounting treatments for these two arrangements are not the same.

Which of the Following Statements Is Incorrect