Asked by Joseph Stewart on Jun 05, 2024
Verified
For a joint venture to be recognised under AASB 11,there must be a contractual arrangement.
Contractual Arrangement
An agreement between two or more parties with legally binding terms and conditions.
AASB 11
The Australian Accounting Standards Board standard addressing the accounting for joint arrangements, requiring parties to a joint arrangement to recognize their rights and obligations.
Joint Venture
A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or any other business activity.
- Comprehend the implications of contractual arrangements on the recognition and accounting of joint ventures.
Verified Answer
CJ
Cynthia Jones-WashingtonJun 07, 2024
Final Answer :
True
Explanation :
According to AASB 11, a joint venture must have a contractual arrangement in order to be recognized. This contractual arrangement can be in the form of a written agreement or an implied agreement.
Learning Objectives
- Comprehend the implications of contractual arrangements on the recognition and accounting of joint ventures.