The project is owned by the Wafi-Golpu Joint Venture (WGJV), one of three
unincorporated joint ventures between subsidiaries of Newcrest (50%) and Harmony Gold (50%), formed in 2008 and referred to collectively as the Morobe Mining Joint Ventures (MMJV).
In 1977, new Section 3055 was added to the CICA Handbook specifically allowing firms to use either the equity method or proportionate consolidation to account for interests in corporate or unincorporated joint ventures (Mulcahy 1977).
Research: Investments in corporate and unincorporated joint ventures. CA Magazine (August): 56-59.
18 prescribes the equity method of accounting for corporate joint ventures but does not address the proper accounting treatment of partnerships or
unincorporated joint ventures. Canada defines joint ventures more broadly and requires proportionate consolidation.
Similarly, the process whereby a merger is generally reviewed in advance should be extended to unincorporated joint ventures which are typically challenged only after they have been in operation for several years.
71 (transfer of interest in unincorporated joint venture not reportable).
Given that the use on
unincorporated joint ventures is unusual in Russia and the courts are, as yet, inexperienced in resolving commercial disputes, it is the latter alternative that is most often selected.
