Question Tag: Joint Ventures

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ATAX – May 2016 – L3 – Q3 – Petroleum Profits Tax (PPT)

Analyze the taxation effects of incentives on Joint Ventures vs. Sole Risk operations, compute Tax Inversion Penalty, and explain Mineral Rights Acquisition Costs.

Question

Ugheli Limited is operating a Joint Venture with NNPC under the Year 2000 Memorandum of Understanding, while Eket Limited operates under the Sole Risk Operation agreement.

The following information reflects the two companies’ operations for the month of July 2014:

Required:

(a)
i. Using the above information, compare the effects of Incentives on Joint Venture Operation as against the Sole Risk Operation using the two companies’ operations. (7 Marks)

ii. What is the purpose of Tax Inversion Penalty (TIP)? (4 Marks)

iii. Determine the Tax Inversion Penalty and the Revised Government Take from the operations of the two companies. (Tax Inversion Rate is 35%) (3 Marks)

(b) Explain the term “Mineral Rights Acquisition Costs.” (3 Marks)

(c) Explain briefly the differences between Joint Venture and Sole Risk Agreements under the Year 2000 Memorandum of Understanding. (3 Marks)

Answer

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Tags: Joint Ventures, Sole Risk Operations, Tax Incentives, Tax Inversion Penalties
Level: Level 3

Topic: Petroleum Profits Tax (PPT)

CR – May 2019 – L3 – Q5 – Joint Arrangements (IFRS 11)

Account for a joint arrangement and decommissioning obligations under IFRS 11 and handle the provision for a major overhaul under IAS 37.

Question

a. LPG Plc. is a publicly traded entity on the Nigerian Stock Exchange involved in the production of and trading in natural gas in Nigeria. LPG Plc. jointly owns a gas storage facility with another entity, Tan Oil Nigeria Limited. Both parties extract gas from onshore gas fields in the Niger Delta, which they own and operate independently from each other. LPG owns 55% of the gas storage facility and Tan Oil Nigeria owns 45%. Services and costs are shared between them according to their percentage holding, however, decisions regarding the storage facility require unanimous agreement of the parties. The gas storage facility is pressurised so that the gas is pushed out when extracted. When the gas pressure is reduced to a certain level, the remaining gas is irrecoverable and remains in the gas storage facility until it is decommissioned. The Nigeria law requires the decommissioning of the storage facility at the end of its useful life. LPG Plc. wishes to know how to treat the agreement with Tan Oil Nigeria Limited, including any obligation or possible obligation arising on the gas storage facility.

NB: Ignore accounting for the irrecoverable gas.

b. LPG purchased a major gas plant on 1 January, 2018 and the Directors estimated that a major overhaul is required every two years. The costs of the overhaul are approximately ₦25 million, which comprises ₦15 million for parts and equipment and ₦10 million for labour. The Directors proposed to accrue the cost of the overhaul over the two years of operations up to that date and create a provision for the expenditure.

Required:
Discuss, with reference to International Financial Reporting Standards (IFRS), how LPG Plc should account for the agreement in (a) above (11 marks) and the transactions in (b) for its year ended 31 August, 2018. (4 marks)

Answer

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Tags: Accounting for Provisions, Decommissioning, IFRS 11, Joint Arrangements, Joint Ventures, Overhaul, Provisions
Level: Level 3

Topic: Joint Arrangements (IFRS 11)

FA – Nov 2013 – L1 – SA – Q29 – Accounting from Incomplete Records

Understanding commission entitlement for a venturer when guaranteeing a debt.

Question

A venturer is entitled to ____________ commission when guaranteed any debt owed by customers.

Answer

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Tags: Commission, Debt Guarantee, Joint Ventures
Level: Level 1

Topic: Accounting from Incomplete Records
Series: NOV 2013

FA – Nov 2013 – L1 – SA – Q23 – Accounting from Incomplete Records

Understanding the balance in a venturer’s account in a Joint Venture.

Question

In a Joint Venture Account, what does the balance in a venturer’s account represent?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Balances, Financial Transactions, Joint Ventures
Level: Level 1

Topic: Accounting from Incomplete Records
Series: NOV 2013

BMF – Nov 2021 – L1 – SB – Q2e – Business and Organizational Structures and Choices

Question asking for the advantages and disadvantages of joint ventures.

Question

State THREE advantages and TWO disadvantages of joint ventures.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Strategy, Joint Ventures, Partnership
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2021

BMF – Nov 2021 – L1 – SB – Q2D – Business and Organizational Structures and Choices

Question about stating four characteristics of a joint venture.

Question

State FOUR characteristics of a joint venture

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Collaboration, Business Structures, Joint Ventures
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2021

BMF – Nov 2021 – L1 – SB – Q2a – Business and Organizational Structures and Choices

Question about the concept of a joint venture and its explanation.

Question

Explain the concept of a joint venture.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Formation, Corporate Structures, Joint Ventures
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2021

BMF – May 2017 – L1 – SB – Q1a – Business and Organizational Structures and Choices

Discusses how strategic alliances and joint ventures can be used to gain competitive advantage, and briefly explains restricting competition and cartel concepts.

Question

In order to survive and achieve a competitive advantage, companies may need to enter into collaboration with stakeholders.

Required:

Using Strategic Alliances and Joint Ventures, explain how collaboration can be used in business to achieve competitive advantage.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Collaboration, Cartels, Competitive Advantage, Joint Ventures, Restricting Competition, Strategic Alliances
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2017

BMF – May 2017 – L1 – SA – Q11 – Business and Organizational Structures and Choices

Multiple-choice question on identifying a form of strategic alliance.

Question

Which of the following is a strategic alliance?

A. Joint venture
B. People alliance
C. Geographic specific
D. Investment
E. Sale

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Agreements, Joint Ventures, Strategic Alliances
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2017

BMF – May 2024 – L1 – SB – Q4b – Business and Organizational Structures and Choices

Explanation of the advantages and disadvantages of joint ventures.

Question

b. State FOUR advantages and FOUR disadvantages of Joint ventures. (8 Marks)

Answer

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Tags: Advantages, Business Partnerships, Disadvantages, Joint Ventures
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2024

ATAX – May 2016 – L3 – Q3 – Petroleum Profits Tax (PPT)

Analyze the taxation effects of incentives on Joint Ventures vs. Sole Risk operations, compute Tax Inversion Penalty, and explain Mineral Rights Acquisition Costs.

Question

Ugheli Limited is operating a Joint Venture with NNPC under the Year 2000 Memorandum of Understanding, while Eket Limited operates under the Sole Risk Operation agreement.

The following information reflects the two companies’ operations for the month of July 2014:

Required:

(a)
i. Using the above information, compare the effects of Incentives on Joint Venture Operation as against the Sole Risk Operation using the two companies’ operations. (7 Marks)

ii. What is the purpose of Tax Inversion Penalty (TIP)? (4 Marks)

iii. Determine the Tax Inversion Penalty and the Revised Government Take from the operations of the two companies. (Tax Inversion Rate is 35%) (3 Marks)

(b) Explain the term “Mineral Rights Acquisition Costs.” (3 Marks)

(c) Explain briefly the differences between Joint Venture and Sole Risk Agreements under the Year 2000 Memorandum of Understanding. (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Joint Ventures, Sole Risk Operations, Tax Incentives, Tax Inversion Penalties
Level: Level 3

Topic: Petroleum Profits Tax (PPT)

CR – May 2019 – L3 – Q5 – Joint Arrangements (IFRS 11)

Account for a joint arrangement and decommissioning obligations under IFRS 11 and handle the provision for a major overhaul under IAS 37.

Question

NB: Ignore accounting for the irrecoverable gas.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting for Provisions, Decommissioning, IFRS 11, Joint Arrangements, Joint Ventures, Overhaul, Provisions
Level: Level 3

Topic: Joint Arrangements (IFRS 11)

FA – Nov 2013 – L1 – SA – Q29 – Accounting from Incomplete Records

Understanding commission entitlement for a venturer when guaranteeing a debt.

Question

A venturer is entitled to ____________ commission when guaranteed any debt owed by customers.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Commission, Debt Guarantee, Joint Ventures
Level: Level 1

Topic: Accounting from Incomplete Records
Series: NOV 2013

FA – Nov 2013 – L1 – SA – Q23 – Accounting from Incomplete Records

Understanding the balance in a venturer’s account in a Joint Venture.

Question

In a Joint Venture Account, what does the balance in a venturer’s account represent?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Balances, Financial Transactions, Joint Ventures
Level: Level 1

Topic: Accounting from Incomplete Records
Series: NOV 2013

BMF – Nov 2021 – L1 – SB – Q2e – Business and Organizational Structures and Choices

Question asking for the advantages and disadvantages of joint ventures.

Question

State THREE advantages and TWO disadvantages of joint ventures.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Strategy, Joint Ventures, Partnership
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2021

BMF – Nov 2021 – L1 – SB – Q2D – Business and Organizational Structures and Choices

Question about stating four characteristics of a joint venture.

Question

State FOUR characteristics of a joint venture

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Collaboration, Business Structures, Joint Ventures
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2021

BMF – Nov 2021 – L1 – SB – Q2a – Business and Organizational Structures and Choices

Question about the concept of a joint venture and its explanation.

Question

Explain the concept of a joint venture.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Formation, Corporate Structures, Joint Ventures
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: NOV 2021

BMF – May 2017 – L1 – SB – Q1a – Business and Organizational Structures and Choices

Discusses how strategic alliances and joint ventures can be used to gain competitive advantage, and briefly explains restricting competition and cartel concepts.

Question

In order to survive and achieve a competitive advantage, companies may need to enter into collaboration with stakeholders.

Required:

Using Strategic Alliances and Joint Ventures, explain how collaboration can be used in business to achieve competitive advantage.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Collaboration, Cartels, Competitive Advantage, Joint Ventures, Restricting Competition, Strategic Alliances
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2017

BMF – May 2017 – L1 – SA – Q11 – Business and Organizational Structures and Choices

Multiple-choice question on identifying a form of strategic alliance.

Question

Which of the following is a strategic alliance?

A. Joint venture
B. People alliance
C. Geographic specific
D. Investment
E. Sale

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Agreements, Joint Ventures, Strategic Alliances
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2017

BMF – May 2024 – L1 – SB – Q4b – Business and Organizational Structures and Choices

Explanation of the advantages and disadvantages of joint ventures.

Question

b. State FOUR advantages and FOUR disadvantages of Joint ventures. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advantages, Business Partnerships, Disadvantages, Joint Ventures
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2024

Question Tag: Joint Ventures

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ATAX – May 2016 – L3 – Q3 – Petroleum Profits Tax (PPT)

Analyze the taxation effects of incentives on Joint Ventures vs. Sole Risk operations, compute Tax Inversion Penalty, and explain Mineral Rights Acquisition Costs.

You're reporting an error for "ATAX – May 2016 – L3 – Q3 – Petroleum Profits Tax (PPT)"

CR – May 2019 – L3 – Q5 – Joint Arrangements (IFRS 11)

Account for a joint arrangement and decommissioning obligations under IFRS 11 and handle the provision for a major overhaul under IAS 37.

You're reporting an error for "CR – May 2019 – L3 – Q5 – Joint Arrangements (IFRS 11)"

FA – Nov 2013 – L1 – SA – Q29 – Accounting from Incomplete Records

Understanding commission entitlement for a venturer when guaranteeing a debt.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q29 – Accounting from Incomplete Records"

FA – Nov 2013 – L1 – SA – Q23 – Accounting from Incomplete Records

Understanding the balance in a venturer’s account in a Joint Venture.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q23 – Accounting from Incomplete Records"

BMF – Nov 2021 – L1 – SB – Q2e – Business and Organizational Structures and Choices

Question asking for the advantages and disadvantages of joint ventures.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q2e – Business and Organizational Structures and Choices"

BMF – Nov 2021 – L1 – SB – Q2D – Business and Organizational Structures and Choices

Question about stating four characteristics of a joint venture.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q2D – Business and Organizational Structures and Choices"

BMF – Nov 2021 – L1 – SB – Q2a – Business and Organizational Structures and Choices

Question about the concept of a joint venture and its explanation.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q2a – Business and Organizational Structures and Choices"

BMF – May 2017 – L1 – SB – Q1a – Business and Organizational Structures and Choices

Discusses how strategic alliances and joint ventures can be used to gain competitive advantage, and briefly explains restricting competition and cartel concepts.

You're reporting an error for "BMF – May 2017 – L1 – SB – Q1a – Business and Organizational Structures and Choices"

BMF – May 2017 – L1 – SA – Q11 – Business and Organizational Structures and Choices

Multiple-choice question on identifying a form of strategic alliance.

You're reporting an error for "BMF – May 2017 – L1 – SA – Q11 – Business and Organizational Structures and Choices"

BMF – May 2024 – L1 – SB – Q4b – Business and Organizational Structures and Choices

Explanation of the advantages and disadvantages of joint ventures.

You're reporting an error for "BMF – May 2024 – L1 – SB – Q4b – Business and Organizational Structures and Choices"

ATAX – May 2016 – L3 – Q3 – Petroleum Profits Tax (PPT)

Analyze the taxation effects of incentives on Joint Ventures vs. Sole Risk operations, compute Tax Inversion Penalty, and explain Mineral Rights Acquisition Costs.

You're reporting an error for "ATAX – May 2016 – L3 – Q3 – Petroleum Profits Tax (PPT)"

CR – May 2019 – L3 – Q5 – Joint Arrangements (IFRS 11)

Account for a joint arrangement and decommissioning obligations under IFRS 11 and handle the provision for a major overhaul under IAS 37.

You're reporting an error for "CR – May 2019 – L3 – Q5 – Joint Arrangements (IFRS 11)"

FA – Nov 2013 – L1 – SA – Q29 – Accounting from Incomplete Records

Understanding commission entitlement for a venturer when guaranteeing a debt.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q29 – Accounting from Incomplete Records"

FA – Nov 2013 – L1 – SA – Q23 – Accounting from Incomplete Records

Understanding the balance in a venturer’s account in a Joint Venture.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q23 – Accounting from Incomplete Records"

BMF – Nov 2021 – L1 – SB – Q2e – Business and Organizational Structures and Choices

Question asking for the advantages and disadvantages of joint ventures.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q2e – Business and Organizational Structures and Choices"

BMF – Nov 2021 – L1 – SB – Q2D – Business and Organizational Structures and Choices

Question about stating four characteristics of a joint venture.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q2D – Business and Organizational Structures and Choices"

BMF – Nov 2021 – L1 – SB – Q2a – Business and Organizational Structures and Choices

Question about the concept of a joint venture and its explanation.

You're reporting an error for "BMF – Nov 2021 – L1 – SB – Q2a – Business and Organizational Structures and Choices"

BMF – May 2017 – L1 – SB – Q1a – Business and Organizational Structures and Choices

Discusses how strategic alliances and joint ventures can be used to gain competitive advantage, and briefly explains restricting competition and cartel concepts.

You're reporting an error for "BMF – May 2017 – L1 – SB – Q1a – Business and Organizational Structures and Choices"

BMF – May 2017 – L1 – SA – Q11 – Business and Organizational Structures and Choices

Multiple-choice question on identifying a form of strategic alliance.

You're reporting an error for "BMF – May 2017 – L1 – SA – Q11 – Business and Organizational Structures and Choices"

BMF – May 2024 – L1 – SB – Q4b – Business and Organizational Structures and Choices

Explanation of the advantages and disadvantages of joint ventures.

You're reporting an error for "BMF – May 2024 – L1 – SB – Q4b – Business and Organizational Structures and Choices"

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