Keyword Analysis & Research: joint venture costs

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Frequently Asked Questions

How to record the initial investment in a joint venture?

The company needs to record the initial investment at cost which usually equal to the common stock of the joint venture. The cost of investment includes other fees which contribute directly related to the investment. It includes transaction cost, legal fee, accounting fee but excludes the internal cost.

What is a jointjoint venture?

Joint venture is an agreement where parties have joint control over the arrangement and have access to the network access of the arrangement. All parties will contribute the capitals include cash, fixed asset, and other resources. The ownership of company depends on the percentage of the capital invested.

How can I get help with joint venture cost?

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What is the deduction for investment in joint venture?

The investment in joint venture needs to be derecognized when the company sells the investment. The investment will be deducted by the sale proportion, if the company sells a whole investment, it needs to deduct the whole amount as well. The difference between book value and consideration receive will consider as the gain or loss.

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