Koninklijke Ahold N.V., a food retailer headquartered in the Netherlands, reported in notes to its annual report
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Koninklijke Ahold N.V., a food retailer headquartered in the Netherlands, reported in notes to its annual report that it owns \(60 \%\) of the outstanding common shares in a joint venture, ICA. Selected notes to Ahold's annual report (prepared under IFRS) follow:
Required
a. What is a joint venture?
b. Given that Ahold owns more than \(50 \%\) of this joint venture, why does the company not consolidate this investment? Does this differ from U.S. GAAP?
c. What method does Ahold use to report the ICA joint venture? Explain how this method works.
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Related Book For
Financial And Managerial Accounting For MBAs
ISBN: 9781618533593
6th Edition
Authors: Peter D. Easton
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