Submitted by: Submitted by Deyzelungab
Views: 10
Words: 1607
Pages: 7
Category: People
Date Submitted: 09/29/2015 04:59 AM
SUMMARY
IFRS 11 Joint Arrangements
Overview
IFRS 11 describes the accounting for a joint arrangement. The investor will be required to either apply the
equity method of accounting or recognize, on a line-by-line basis, its share of the underlying assets,
liabilities, revenues and expenses. The accounting treatment required will depend on the substance of the
arrangement and the nature of the investor’s interest in it. The option to apply proportionate consolidation
has been removed. IFRS 11 supersedes the requirements relating to joint ventures in IAS 31 and SIC 13.
Objective
To establish principles for financial reporting by entities that have an interest in arrangements that are
controlled jointly (i.e. joint arrangements).
Scope
All entities that are a party to a joint arrangement.
Effective date
Effective for annual periods beginning on or after 1 January 2013. Early applicaiton is permitted.
Defined terms
IFRS 11 defines the following terms that form an integral part of this IFRS.
Joint arrangement – An arrangement of which two or more parties have joint control.
Joint control – The contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control.
Joint operation – A joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement.
Joint operator – A party to a joint operation that has joint control of that joint operation.
Joint venture – A joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the arrangement.
Joint venturer – A party to a joint venture that has joint control of that joint venture.
Party to a joint arrangement – An entity that participates in a joint arrangement, regardless of whether that
entity has joint control of the arrangement.
Separate vehicle – A...