![]() ![]() ![]() The co-venturers are free to carry on their own business, unless otherwise provided in the joint venture agreement, during the life of the venture. Dissolution: Once the term or purpose of the joint venture is complete, the agreement comes to an end, and the accounts of the coventurers, are settled, as and when it is dissolved.Access to advanced technology: By entering into joint venture firms get access to various techniques of production, marketing and doing business, which decreases the overall cost and also improves quality.The computation of the profit and loss is usually done at the end of the venture, however, when it continues for the long duration, the profit and loss is calculated annually. Sharing of profit and loss: The co-venturers agree to share the profits and losses of the business in an agreed ratio.Pooling of resources and expertise: Firms pool their resources like capital, manpower, technical know-how, and expertise, which helps in large-scale production.The standard permits jointly controlled entities to be accounted for using either the equity method or by pro. Joint Control: There exist a joint control of the co-venturers over business assets, operations, administration and even the venture. IAS 31 Interests in Joint Ventures sets out the accounting for an entitys interests in various forms of joint ventures: jointly controlled operations, jointly controlled assets, and jointly controlled entities.Agreement: Two or more firms come to an agreement, to undertake a business, for a definite purpose and are bound by it.They contribute capital, pooling the financial, physical, intellectual and managerial resources, participating in the operations and sharing the risks and returns in the predetermined ratio. The co-venturers come to a contractual agreement for carrying out an economic activity, which has shared ownership and control. The firms joining hands in a joint venture are called Co-venturers, which can be a private company, government company or foreign company. It is an agreement between two or more parties to combine their resources (generally: capital, know-how, execution capability, local network) in achieving a common business goal. and business practices into the joint venture, while the domestic. of Japan come together to set up Maruti Suzuki India Ltd. It starts with a definition of joint ventures and the different types these may take. ![]()
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