Join Venture accounting

Do you use the equity method for JV’s regardless of % ownership? If you own 60% of the JV, you still do equity? Just wanting to confirm.

yes, under GAAP u would use equity. If company follows IFRS, then you could use proportionate consolidation.

% is just a guidance. Degree of influence determines what you must use. you can use consolidation even if you own less than 50% i believe. the clue will be in the words like “significant influence” or “control”

drymartini, NOT if it is a JV, that’s the point of this post. Another question: If the sub qualifies as a VIE, then you don’t need to consolidate, right?