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 from that of a joint operation.
C)AASB 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 is different. A joint venture is a separate entity where the participants have joint control and share risks and rewards, while a joint operation is a joint arrangement where the participants have shared control over assets and liabilities. AASB 11 provides guidance on accounting for joint arrangements, including joint operations, but not for the joint operation itself. The statement of financial position may be the main financial statement for a joint venture, but for a joint operation, the statement of profit or loss and other comprehensive income may be more relevant.

Which of the Following Statements Is Incorrect