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:

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