Ie29 banks a and b the parties agreed to combine their corporate. The ifrs interpretations committee has previously considered a number of relevant issues that have been submitted by stakeholders. It also noted that those rights and obligations, in respect of that interest, are the same regardless of whether separate or consolidated financial statements are prepared, by referring to paragraph 26 of ifrs 11. Contents illustrative examples ifrs 11 joint arrangements ie1example 1 construction. Hong kong financial reporting standard 11 joint arrangements. Banks a and b the parties agreed to combine their corporate. Snapshot ifrs 11 joint arrangements pkf international. Ifrs 11 joint arrangements 1 overview ifrs 11 describes the accounting for a joint arrangement. About the joint ventures project and ifrs 11 joint. The ifrs foundations logo and the ifrs for smes logo, the iasb logo, the hexagon device, eifrs, ias, iasb, ifric, ifrs, ifrs for smes, ifrs foundation, international accounting standards, international financial reporting standards, niif and sic are registered trade marks of the ifrs foundation, further details of which are available from the ifrs. Aasb 11 joint arrangements incorporates ifrs 11 joint arrangements issued by. Joint control involves the contractually agreed sharing of control and arrangements subject to joint control are classified as either a joint venture representing a share of net assets and equity accounted or a joint operation representing rights to assets and obligations for liabilities, accounted for accordingly. Australian accounting standard aasb 11 joint arrangements is set out in. A joint arrangement is either a joint operation or a joint venture.
The board has not undertaken any specific implementation support activities relating to this standard. Ifrs 11 joint arrangements illustrative examples croneri tax and. The principle set out in ifrs 11 is that where a party has the rights to the assets and the obligations for the liabilities of a joint arrangement, then the joint arrangement is considered to be a joint operation and those assets and liabilities or appropriate share thereof should be recognized by the parties to the joint arrangement. Ifrs 11 joint arrangements ifrsbox making ifrs easy. Combining information obtained and decisions made in the first two stages in order to implement the new standard. As a result, the requirements in ifrs 11 simplify the. Requires determining the type of joint arrangement. The iasb has issued the longawaited ifrs 11, joint arrangements, as part of a package of.
Ifrs in focus newsletter iasb issues new standard on joint arrangements summarising the requirements of ifrs 11 pdf 69k, may 2011. Joint arrangements the hong kong institute of certified public. Account for the interest in a joint arrangement based on the type. Challenges in adopting and applying ifrs 11 applying ifrs ifrs 11 joint arrangements. International public sector accounting standard 37, joint arrangements, is set out in paragraphs 144. The objective of ifrs 11 joint arrangements is to establish principles for financial reporting by entities that have an interest in arrangements that are controlled jointly i. Hong kong should be addressed to the ifrs foundation at further details. Ifrs 11 joint arrangements outlines the accounting by entities that jointly control an arrangement. The investor will be required to either apply the equity method of accounting or recognize, on a linebyline basis, its share of the underlying assets, liabilities, revenues and expenses. Snapshot ifrs 11 joint arrangements objective to establish principles for financial reporting by entities that have an interest in arrangements that are controlled jointly i.