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IFRS for intercorporate investments: At the beginning of 2014, Nokia enters a joint venture with another company to develop a communications network. Each company invests €6,000,000 for a 50

1) €6,000,000
2) €12,000,000
3) €3,000,000
4) €9,000,000

1 Answer

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Final answer:

The initial investment made by Nokia and another company in a joint venture is €12,000,000.

Step-by-step explanation:

The subject of this question is Business. The question is asking about the initial investment made by Nokia and another company in a joint venture. The question provides the amount invested by each company, €6,000,000, and asks for the total investment.

To find the total investment, we add the amounts invested by both companies. In this case, since Nokia and the other company each invested €6,000,000, the total investment is €6,000,000 + €6,000,000 = €12,000,000. Therefore, the correct answer is option 2) €12,000,000.

The question pertains to the International Financial Reporting Standards (IFRS) regarding an investment in a joint venture. Specifically, it addresses the initial contribution by Nokia to enter a joint venture in 2014 for the purpose of developing a communications network. Since the company invests €6,000,000 for a 50% stake, the total investment in the joint venture is €12,000,000 (Nokia's share of €6,000,000 plus the other company's equal share of €6,000,000)

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