The disadvantage of the one- line method is that:
A)it overlooks the fact that the joint venture operation involves the direct ownership of assets and the direct incurrence of liabilities by the individual venturers
B)in the absence of further disclosures,it could mislead financial statement users by conveying a view that the proportions of joint venture assets and liabilities recognised are under the direct and absolute control of the venturer
C)it provides a more complete picture of the operations,resources and obligations of the entity and more information on the risks faced by the entity
D)none of the above

Question

Quizplus · Accepted Answer

The one-line method can overlook the direct ownership and liabilities incurred by individual venturers, which is a disadvantage.

The Disadvantage of the One- Line Method Is That