True or false:

A) Any inter-company indebtedness between the associate company and its parent must be cancelled out on consolidation

B) IAS 38 states that recognized intangible non-current assets should be recognized at cost less accumulated amortization and may not be revalued

2. Company A Ltd and company B ltd enter into an agreement where A manufactures the tennis balls and B manufactures the strings and assembles the racquet. Each uses its own assets and is responsible for paying its own expenses. Profit from the sale of the racquets are shared between the two companies and the ratio is reviewed annually. This is:

a) a jointly controlled operation

b) a joint venture

c) jointly controlled assets