Proportinate Consolidation for Joint ventures is not allowed Under US GAAP, true or false?
true
partly true - under US GAAP Prop. Consolidation is allowed for some construction industry companies…
its allowed under very limited circumstances.
Well apprently it’s allowed for very limited situations but generally not allowed… But if you saw a q Saying john and bill were discussing proportionate consolidation for joint ventures. bill said “Proportinate Consolidation for Joint ventures is not allowed Under US GAAP” (wow I impressed myself there, sounds like a proper question, done way too many questions I think) anyway what would the answer be?
there is no way they’re going to ask us about the construction industry on the intercorp stuff. no freaking way. my working assumption will be it is not allowed under GAAP.
false they asked this question in one of the practice exams, and the answer was its allowed under very limited circumstances.
perfect, I thought it was in one of he practice exams but couldn’t remember the answer! thanks
usually they would go the other way and tell you: Prop Consol is allowed under US GAAP for Joint ventures and make you say true or false. Given CFAI that is the only logical question. Bcos the other way “Not allowed” can bring in a “possibly true” choice answer - which they do not have…
They will probably use which way is the “preferred” method in US GAAP on the exam… in which case it isnt Prop consol…