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.
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.
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.
Macarthur Coal's mines and exploration tenements are held within
unincorporated joint ventures, a structure which has allowed the Company to gain significant strategic benefits by involving other parties in its projects.
