Real Estate Investment Trust : Joint ventures: financial statements: CTA2010/S592, S593 S588 and 589
Where a look through notice has been given, the principal company of a joint venture group is obliged to prepare financial statements in respect of the joint venture group and to include the amounts equal to the beneficial interest held in the joint venture group by members of the venturing group (CTA2010/S592 and 593). These financial statements will then feed into the financial statements of the venturing UK-REIT group or the new deemed UK-REIT group (where it is a venturing company UK-REIT).
Where a ‘look through’ notice has been given, CTA2010/S588 applies the Part 12 rules to the deemed UK-REIT group or the UK REIT Group as if the JV company was a member of that group. CTA2010/S589 applies the part 12 rules in the same way for the JV group.
The single company UK-REIT (i.e. a venturing company – see IFM30015) is obliged to prepare financial statements covering its activities and those of the joint venture company or group. These are much the same as the financial statements that the principal company of a Group REIT is obliged to prepare for group activities. The financial statements should include the percentage of income, expenses, gains, losses, assets and liabilities of the joint venture company/group equal to the percentage of the beneficial interest held by the venturing company.
The Group UK-REIT (i.e. a venturing group - see IFM30015) is obliged to include in its financial statements the percentage of income, expenses, gains, losses, assets and liabilities of the joint venture company/group equal to the percentage of the beneficial interest it holds.