When accounting for idle construction funds in joint ventures, how should they be treated?

When accounting for idle construction funds in joint ventures, these funds should be excluded from external investment pools. This is because idle funds are not actively engaged in any investment or construction projects and are typically retained for future use or potential cash flow needs of the joint venture. The proper treatment of these funds is to keep them separate from external investment pools to ensure clarity in financial reporting and to properly reflect their status as non-invested resources.

Excluding these idle funds helps maintain the integrity of both the joint venture's financial structure and the accurate representation of its liquidity position. It allows accounting for such funds in a way that they do not distort the performance or viability of the external investment pools, which include only those assets that are actively generating income or are intended for investment purposes. This approach also supports adherence to accounting standards and provides transparency in financial statements to stakeholders.