When a joint operator is accounting for an interest in a joint operation it is required to recognise which of the following in its financial statements? $$\begin{array} { | l | c | c | c | c | }
\hline & \text { I } & \text { II } & \text { III } & \text { IV } \
\hline \text { The assets that it controls } & \text { Yes } & \text { Yes } & \text { Yes } & \text { Yes } \
\hline \text { The liabilities that it incurs } & \text { No } & \text { Yes } & \text { No } & \text { Yes } \
\hline \begin{array} { l }
\text { Its share of incorne from the sale of goods by the joint } \
\text { operation }
\end{array} & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline \text { The expenses that it incurs } & \text { No }& \text { No } & \text { No } & \text { Yes } \
\hline
\end{array}$$
A) I.
B) II.
C) III.
D) IV.

Question

When a joint operator is accounting for an interest in a joint operation it is required to recognise which of the following in its financial statements? $$\begin{array} { | l | c | c | c | c | } 
\hline & \text { I } & \text { II } & \text { III } & \text { IV } \
\hline \text { The assets that it controls } & \text { Yes } & \text { Yes } & \text { Yes } & \text { Yes } \
\hline \text { The liabilities that it incurs } & \text { No } & \text { Yes } & \text { No } & \text { Yes } \
\hline \begin{array} { l } 
\text { Its share of incorne from the sale of goods by the joint } \
\text { operation }
\end{array} & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline \text { The expenses that it incurs } &  \text { No }& \text { No } & \text { No } & \text { Yes }  \
\hline
\end{array}$$
A) I.
B) II.
C) III.
D) IV.

Quizplus · Accepted Answer

A joint operator is required to recognize in its financial statements the assets it controls, the liabilities it incurs, its share of income from the sale of goods by the joint operation, and the expenses it incurs.

When a Joint Operator Is Accounting for an Interest in a Joint