COMMERCE 4AC3 Study Guide - Final Guide: Sweat Equity, Equity Method, Debits And Credits

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4AC3
• Professor: Kevin Veenstra

Document Summary

Consolidations march 19th: tested on joint ventures only, journal entries: method under ifrs equity method. Initial contribution of assets from venture to joint venture: a&b contribute assets to the joint venture, gain or loss on initial recognition, a is one of the joint venturers contributes equipment fvk, cost: k and cash = It will be realized over the useful life of the equipment: end of year 1 you would dr. Unrealized gain: gain for b (20,000 15,000) x (16/33) = ,424, journal entry, dr. investment in jv 17,000, cr. Unrealized gain: underlying assumption: commercial substance the timing and/or dollar amounts of cashflows associated with the contribution are different from the timing and/or the amount of cashflows associated with ownership share received. Gain to 364: cr. unrealized gain of the difference. Is the amount of cashback less than or equal to the cash a contributed: yes, (cid:1005)(cid:1004)(cid:1004)% (cid:272)a(cid:373)e fro(cid:373) outside part(cid:455) that"s (cid:449)h(cid:455) full.