2 Three parties jointly buy an aircraft. The 15 -year contractual agreement gives each entin right to use the aircraft for a certain number of days each year and share the mainte costs proportionately. Decision-making regarding the maintenance and disposal af aircraft, which are the relevant activities for the aircraft, require the unanimous agreem all the three parties. Required: How should all three parties classify the joint arrangement? 3 MMF entertainment has struck a deal with BYP Cineplex to co-produce 20 films 1= next five years. The two companies (MMF and BYP owned 60\% and 40% respect signed a memorandum of understanding to set up a joint venture company opera film investment and production. The new joint venture is expected to make use of B planning and marketing skills and BYP's local film production capabilities and then network. Both parties fund their respective ownership percentages in the newly-establishe company. This allows the film company to reduce its initial capital outlay by transferring some of the risks and rewards of film under/over-performance to the financial investor. Eact party is responsible for their respective costs. However, MMF and BYP are entitled to the net outcome of the joint venture based on shareholding percentages. The joint venture could find itself with net losses during the initial years. However, the business is expected to gross quickly in the subsequent years. Required: Explain the equity method of accounting in respect of the above arrangement. 4 On 31 December 2011, entity Margie acquired 30% of the ordinary shares that carry voting rights of entity Eshan for RM200,000. Margie has significant influence over Eshan. In January 2012, Eshan declared and paid a dividend of RM40,000 out of the profits earned in 2011. Required: Calculate the carrying amount of Ynvestment in associate on 1 January 2012. 5 Bala Bhd holds 30% of the ordinary share capital of Lydia Bhd and exerts significant influence During the financial year ended 30 April 2015, Lydia Bhd sold goods to Bala Bhd valued at RM160,000. The cost of the goods to Lydia Bhd was RM120,000. As at 30 April 2015, 25\% of the goods remained in Bala's inventory