Joint Arrangements

In April 2001 the International Accounting Standards Board (Board) adopted IAS 31 Financial Reporting of Interests in Joint Ventures, which had originally been issued by the International Accounting Standards Committee in December 1990.

In December 2003 the Board amended and renamed IAS 31 with a new title—Interests in Joint Ventures. This amendment was done in conjunction with amendments to IAS 27 Consolidated Financial Statements and Accounting for Investments in Subsidiaries and IAS 28 Accounting for Investments in Associates.

In May 2011 the Board issued IFRS 11 Joint Arrangements to replace IAS 31. IFRS 12 Disclosure of Interests in Other Entities, also issued in May 2011, replaced the disclosure requirements in IAS 31. IFRS 11 incorporated the guidance contained in a related Interpretation (SIC-13 Jointly Controlled Entities-Non-Monetary Contributions by Venturers).

In June 2012 IFRS 11 was amended by Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12). These amendments provided additional transition relief to IFRS 11, limiting the requirement to present adjusted comparative information to only the annual period immediately preceding the first annual period for which IFRS 11 is applied.

In May 2014 the Board amended IFRS 11 to provide guidance on the accounting for acquisitions of interests in joint operations in which the activity constitutes a business.

Other Standards have made minor amendments to IFRS 11, including Annual Improvements to IFRS Standards 2015–2017 Cycle (issued December 2017).

CONTENTS

from paragraph

INTERNATIONAL FINANCIAL REPORTING STANDARD 11

JOINT ARRANGEMENTS

OBJECTIVE 1

Meeting the objective 2

SCOPE 3

JOINT ARRANGEMENTS 4

Joint control 7

Types of joint arrangement 14

FINANCIAL STATEMENTS OF PARTIES TO A JOINT ARRANGEMENT 20

Joint operations 20

Joint ventures 24

SEPARATE FINANCIAL STATEMENTS 26

APPENDICES

A Defined terms

B Application guidance

C Effective date, transition and withdrawal of other IFRSs

D Amendments to other IFRSs

APPROVAL BY THE BOARD OF IFRS 11 ISSUED IN MAY 2011

APPROVAL BY THE BOARD OF AMENDMENTS TO IFRS 11:

Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) issued in June 2012

Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11) issued in May 2014

FOR THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITION

• ILLUSTRATIVE EXAMPLES

FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION

• BASIS FOR CONCLUSIONS
• APPENDIX TO THE BASIS FOR CONCLUSIONS
• Amendments to the Basis for Conclusions on other IFRSs

International Financial Reporting Standard 11 Joint Arrangements (IFRS 11) is set out in paragraphs 1–27 and Appendices A–D. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in the Standard. Definitions of other terms are given in the Glossary for International Financial Reporting Standards. IFRS 11 should be read in the context of its objective and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.