A method of accounting whereby a venturer's share of each of the assets,liabilities,income and expenses of a jointly controlled entity is combined line by line with similar items in the venturer's financial statements is known as:
A)proportionate consolidation
B)equity consolidation
C)shared consolidation
D)unilateral consolidation

Question

Quizplus · Accepted Answer

Proportionate consolidation involves combining the venturer’s share of each of the assets, liabilities, income and expenses of a jointly controlled entity in a line by line manner with similar items in the venturer’s financial statements. This method is commonly used in accounting for jointly controlled entities where the venturer has significant influence but not control over the joint venture.

A Method of Accounting Whereby a Venturer's Share of Each