Reference no: EM132953662

Question - The following statements relate to joint operations and joint ventures:

i. In a joint venture, the investor has rights to the net assets of the arrangement, whereas in a joint operation, the investor has rights and obligations related to the specific assets and liabilities of the arrangement.

ii. When a venturer contributes an asset to a joint arrangement, the accounting for any gain or loss on transfer is the same regardless of whether the joint arrangement is a joint operation or a joint venture.

iii. In a joint operation, all investors must share control; in a joint venture, investors holding a majority of voting rights may share control.

iv. A joint arrangement carried on through a separate vehicle will always be classified as a joint venture.

How many of the above statements are true?