Under the new IFRS standards, joint ventures have to be accounted by equity method and not by proportionate consolidation anymore. They mention this fact in reading 19 but in the EoCs they still use proportionate consolidation. At Schweser QB the exact same problem: Some questions (explicitly targeting on IFRS!) have to be solved by equity method, some still require proportionate consolidation.
So, how to proceed at exam day?
Equity method unless instructed otherwise.
Bump:
This is a MISS in the CFAI text
CFAI 2014 ERRATTA Volume 2 Reading 19: The following two paragraphs were omitted from the bottom of p. 127: Only under rare circumstances will joint ventures be allowed to use proportionate consolidation under IFRS and U.S. GAAP. On the venturer’s financial statements, proportionate consolidation requires the venturer’s share of the assets, liabilities, income, and expenses of the joint venture to be combined or shown on a line-by-line basis with similar items under its sole control. In contrast, the equity method results in a single line item (equity in income of the joint venture) on the income statement and a single line item (investment in joint venture) on the balance sheet. Because the single line item on the income statement under the equity method reflects the net effect of the sales and expenses of the joint venture, the total income recognized is identical under the two methods. In addition, because the single line item on the balance sheet item (investment in joint venture) under the equity method reflects the investors’ share of the net assets of the joint venture, the total net assets of the investor is identical under both methods. There can be significant differences, however, in ratio analysis between the two me
where can we find this errata? please share link, thx
I hated how the CFA mixed everything up. it was very messy and I got really confused.
The Errata is found in the candidates resources. it gets updated constantly so you need to check it regularly. a couple of months ago the paragraph posted by Galli was not there.
Errata less than 3 month before exam date 
, this is too much for my taste of CFA.
thx for source