Joint Venture Accounting
Increasingly Joint Ventures are used to tackle large, complex projects, especially in the Oil & Gas and Construction industries. However, achieving real-time transparency for all partners included presents a real challenge. Consolidation of joint venture projects into each partner's financial and management accounts adds to the challenge.
Almost inevitably, reporting and accounting is set up around the lead partner's system. This means other partners will encounter difficulties in reprocessing information into their own system quickly enough to allow effective participation in decision making.
So, why are Joint Ventures undertaken?
- Participate at higher level in big projects
- Penetrate new markets
- Compliment another partner's skills
- Benefit from local knowledge
- Spread the execution risk on big projects
- Share the financial risks
Despite all these benefits, organisations taking part in Joint Venture may struggle to provide a timely and proper accounting presentation of the underlying activities, such as recognising costs early and matching them against revenues. Inoapps has created a solution that can help organisations achieve this, and more.
Inoapps solution to the Joint Venture Accounting challenge
Inoapps has devised a solution using Oracle Projects that allows companies to manage their Joint Venture Accounting (JVA) agreements. The solution allows the customer to manage the Operated Joint Venture as a whole, and treat it like any other business function, without recording it in their own books.
Through a simple process the company’s share of the Gross costs can be transferred to their own books and the partner can be billed for their share, still recording all the information for traceability. The solution allows for multiple equity partners to be part of a project for different periods of time.
Inoapps JVA Solution Components
- Project reporting and forecasting
- Management accounting
- Financial Accounting
- Legislation compliance
- Cash flow management
- Currency exposure
- Multi country tax reporting
- Audit trail
For more information please download our JVA datasheet or contact us on
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or +44 (0)870 112 2000.
