Proportionate consolidation
AccountingA withdrawn treatment under which an investor included its percentage share of each line of a jointly controlled entity. Ind AS 111 removed it as an option for joint ventures, which are equity-accounted instead.
In plain terms
Worth knowing because older reports and a good deal of commentary still use the phrase. A joint operation looks similar on the face of the accounts but is a different thing: recognition of the party’s own assets and obligations, not a proportion of somebody else’s.