Accounting for Jointly Controlled Entities Essay

Accounting for Jointly Controlled Entities - Essay Example 2. Similarly venturer share in income and expenses in each transaction of the consolidated joint venture income statement shall be shown as separate line item under income and expenses of same nomenclature of venturer own Income statement. 4. Balance sheet will not carry a separate ‘investment account with joint venture’ as total of each asset and liability under each head will include assets and liabilities of venturer own business and those of his share in joint venture business. As per IAS 31.341, the venturer under this method may combine his share of assets, liabilities, income, and expenditure under each head in the consolidated joint venture financial statements with the venturer own assets, liabilities, income, and expenditure in the consolidated venturer financial statements. In other words items are not shown separately but only a combined figure is shown for each item in venturer financial statements. 2. Share of income from the joint venture investment is added to the capitalized investment and corresponding credit may be reflected in the statement of retained income or may be brought through by adding that to income of venturer in the venturer income statement. 4. In the financial statements of the venturer, final balance in ‘investment in joint venture’ shall now be shown as fixed assets investments either at cost or at valuation as provided in FRS 9(20)2. 5. It is important to note that when an investment in joint venture is sold, the equity method is applied till the date of sale of such investment after recognizing the gain or loss from such investment. A gain or loss to be recognized under such circumstances shall be equal to the difference between carrying value of investment and the sale consideration of the investment. Equity method is applied to an investment where the investor has

Compareable between lean and six sigma Article Example | Topics and Well Written Essays - 2000 words

Compareable between lean and six sigma - Article Example Thus this paper will identify the weaknesses and strengths of both Six Sigma and lean and the ways in which they compliment each other. Six Sigma and lean are among the two most commonly used continuous improvement tools (Mousa, 2013, p. 1137). Lean originated out of the Toyota Production System and its focus is on the elimination of waste in production which begins from the time an order is placed and ends when the order is delivered (Pojasek, 2003, p. 85). Six Sigma was introduced by the Motorola Corporation and is designed to eliminate variations in production and services and their processes so that defects are reduced and customer satisfaction is improved (Desai, 2006). In other words, lean focuses on reducing waste, while Six Sigma focuses on reducing defects. Therefore, it has been suggested that when lean and Six Sigma philosophies are combined an organization may benefit from significant improvements in a short period of time at a significantly reduced cost (Mousa, 2013, p. 1137). This paper will compare and contrast Six Sigma and Lean with a view to demonstrating their compatibility and differences for continuous improvement. The paper is divided into four parts. The first part of this paper presents a review of literature on lean and Six Sigma. The second part of this paper provides a comparison of the two philosophies. The third part of this paper will discuss the implications for practice and the final part of this paper will make suggestions for further studies. Lean is a philosophical approach to managing production and consist of facilitating a system for eliminating or reducing waste and any activity that does not add value for the end customer (Dora, Kumar, Goubergen, Molnar, & Gellynck, 2013). At its core, lean is a continuous improvement technique focused on â€Å"just-in-time (JIT), quality systems and team works† (Wong, Wong, & Ali, 2009, p.