[CFM52730] Derivative contracts: partnerships: partnership interest measured at fair value
CTA09/S621: company partners using fair value accounting
A company may account for its interest in a partnership in a number of ways, depending on the circumstances.
A partnership may be a joint venture as defined in IFRS 11 Joint Arrangements. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
Where the partnership is a joint venture the company investing in the partnership should, in accordance with FRS 11, account for its interest in the partnership as a fixed asset investment. It may do this in one of two ways: