t ventures. One group supports equity accounting, where the joint venture investment, together with any related goodwill, is identified separately and included in the joint venturer's consolidated financial statements as a single amount, calculated using consolidation techniques. The other group supports proportional consolidation, where the investor's share of the assets and liabilities of the joint venture are amalgamated in the joint venturer's consolidated financial statements with the group amounts on a line-by-line basis ("International review of joint ventures" 10). The proper method of accounting for this investment is another important issue that ADL must consider as part of its due diligence to ensure this JV has the greatest chance of success and offers the greatest possible benefit to ADL for its investment.
ADL believes that Carnival may have unrealistic expectations about how much control it will have over the JV. Yan Zhang writes in Journal of International Business Studies that primary argument of a company involved in a joint venture i
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