In joint ventures, what % does a venturer invest for the venture’s gross profit to be included in its own FS?
This is an accounting question.
The money invested into the joint venture would typically show up in the Income Statement under Investments – which typically fall under the non-operating section of the income statement (eg after you have taken gross profit yet before you deduct taxes and other irregular items to calculate net income.
On the balance sheet, you would see investments fall under the Long Term Assets category.
I think for a publicly traded company in the united states, there are certain specific rules under Sarbanes Oxley which determine at what level (or dollar amount) that an investment is considered "significant" which means that it has to show up on the financial statements – typically all investments are added together and presented as one figure. However, since I am not a CPA, I don’t know exactly what that rule is.
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This is an accounting question.
The money invested into the joint venture would typically show up in the Income Statement under Investments – which typically fall under the non-operating section of the income statement (eg after you have taken gross profit yet before you deduct taxes and other irregular items to calculate net income.
On the balance sheet, you would see investments fall under the Long Term Assets category.
I think for a publicly traded company in the united states, there are certain specific rules under Sarbanes Oxley which determine at what level (or dollar amount) that an investment is considered "significant" which means that it has to show up on the financial statements – typically all investments are added together and presented as one figure. However, since I am not a CPA, I don’t know exactly what that rule is.
http://stocksbuyorsell.com
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