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

Question

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

Quizplus · Accepted Answer

Under the accounting standards for joint operations, a joint operator is required to recognize in its financial statements its share of the assets that it controls, the liabilities that it incurs, its share of the income from the sale of goods by the joint operation, and the expenses that it incurs. This comprehensive approach ensures that the financial statements reflect the nature and extent of the control and responsibilities the entity has within the joint operation.

When a Joint Operator Is Accounting for an Interest in Joint