Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 0 of 9
Which statement is false for joint ventures accounting?
II. IFRS recommends the proportionate consolidation method.
I. The U.S. GAAP does not permit the proportionate consolidation method.
II. IFRS recommends the proportionate consolidation method.
User Contributed Comments 4
| User | Comment |
|---|---|
| cfaajay | U.S.GAAP does allow Proportionate consolidation for unincorporated entities ..such as in construction industry..but U.S.GAAP prefers equity method. |
| thebkr777 | Does this not contradict the chart they gave us? "US: Equity method. IFRS Equity or Proportionate consolidation" |
| SRI2010 | thebkr777, in my opinion, the second one is false because the IFRS doesnt explicity recommend the proportionate consolidation method. it is "either-or" |
| davidt876 | "Both IFRS and U.S. GAAP require the equity method of accounting for joint ventures" - is what the notes just said |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe indicators of cash flow quality;
evaluate the cash flow quality of a company;
CFA® 2025 Level II Curriculum, Volume 2, Module 14.