Investors on Joint Arrangement

 Investor in a joint arrangement is a party to a joint arrangement and do nit have joint
control over that joint arrangement

 Joint venture could have some owners who have joint control over the key decisions and
passive investors who do not participate in key decisions but receives returns on
investments

Accounting for Acquisitions of Interests in Joint Operations

Principles in business combinations accounting:

a. Measuring identifiable assets and liabilities at fair value

b. Recognizing acquisition-related costs at the period in which the costs are incurred

c. Recognizing deferred tax assets and deferred tax liabilities that arise from the recognition
of assets and liabilities

d. Recognizing the excess of the consideration transferred over the net of the acquisition
date amounts the identifiable assets acquired and liabilities incurred

e. Testing for impairment a cash generating unit to which goodwill has been allocated at
least annually