![]() ![]() As a formal agreement is not mandatory, there is no definitive list of what it should contain, but FA2 exams will not go beyond the following: ![]() ![]() While this is not mandatory, it can reduce the possibility of expensive and acrimonious disputes in the future. It is good practice to set out the terms agreed by the partners in a partnership agreement. if the partnership is unable to pay its liabilities, the partners may be called upon to use their personal assets to settle unpaid liabilities of the partnership.the partners have unlimited liability and.the reporting entity (business entity) principle applies to a partnership, so for accounting purposes, the partnership is a separate entity from the partners.In certain jurisdictions, there may be an upper limit to the number of partners but, as that is a legal point, it is not part of the FA2 syllabus.Ī partnership exists to carry on a business.Īs it is a business, the partners seek to generate a profit.Ī partnership is an unincorporated business entity. There are a number of ways in which a partnership may be defined, but there are four key elements.Ī partnership includes at least two individuals (partners). It also provides underpinning knowledge for candidates studying FFA/FA but it is not intended to comprehensively cover the detailed Study Guides for those exams. As such, it covers all of the outcomes in Section H of the detailed Study Guide for FA2. The purpose of this article is to assist candidates to develop their understanding of the topic of accounting for partnerships. An introduction to professional insights.Virtual classroom support for learning partners.Becoming an ACCA Approved Learning Partner. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |