The murky world of JV accounting

There is a woeful lack of detail and authenticity in the accounting for joint ventures...

In the example of Marks & Spencer, it triggered an impairment review and the recognition of an impairment loss of £248m.

When BMW brought the results of BMW Brilliance, a joint venture in China, into its financial statements after increasing its ownership stake, it actually triggered a remeasurement gain of €7.6bn in addition to bringing in all the revenue and expenses of the joint venture.

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By ACCA, BCCTC Members