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Basic Question 0 of 4
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 |
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Learning Outcome Statements
describe a Monte Carlo forward-rate simulation and its application.
CFA® 2025 Level II Curriculum, Volume 4, Module 27.