Page 43 - Finac II - Joint Arranagements
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JOINT ARRANGEMENTS
Comprehensive Example
COMMENT
• In accordance with IFRS 11, a joint operator must
recognise its share of the assets, liabilities, income and
expenses of the joint operation in its separate financial
statements.
• You will notice that this is different compared to an
investment in a subsidiary or associate where the parent
accounts for the investment in accordance with IAS 27.10
in its separate financial statements.
• As the joint operation is included in the separate financial
statements, we will eliminate the intragroup transactions
and balances in the separate records of the joint operator
as it cannot have transactions with itself.
• IFRS 11.22 deals with transactions between an entity and
a joint operation in which it is a joint operator. See IFRS
11.B34 – .B37 for further guidance.
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