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Chapter 19

Joint arrangements

7.1 Definitions

Joint arrangements are defined as ‘arrangements where two or
more parties have joint control’ (IFRS 11, Appendix A). This will only
apply if the relevant activities require unanimous consent of those who
collectively control the arrangement.

7.2 Accounting for joint arrangements

JOINT
ARRANGEMENTS

Joint operation Joint venture

Venturers have ‘rights to Venturers have ‘rights to
assets and obligations net assets of the
for the liabilities of the arrangement’
arrangement’ (IFRS 11, App A).
(IFRS 11, App A).
A joint venture is normally a
separate entity.

Account for share of Equity account
assets, liabilities, incomes
and expenses. (same as associates)

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