Question 1

MFRS 128 Investments in Associates and Joint Ventures deals with associates and joint ventures. Meanwhile MFRS 11 Joint Arrangements establishes principles for financial reporting by entities that have an interest in arrangements that are controlled jointly. Required:

(i) Explain the criteria which distinguish an associate from an ordinary non-current asset investment. [5 marks]

(ii) Explain the principal differences and accounting methods between a jointly controlled operation and a joint venture. [10 marks