Page 16 - FAC4862 slides JAs and Revenue CM

JOINT ARRANGEMENTS

Joint operations (.20 - .23)

• Where parties with joint control have rights to assets and

obligations for liabilities of arrangement

• E.g. Adjacent mines split costs to construct and maintain railway for
transportation of ore

• Per .20, each operator recognises in its separate financial
statements (.26(a)), its share of the JO’s

• Assets

• Liabilities
• Revenues and
• Expenses

• Recognition of above items in terms of applicable IFRSs

• Result: only recognise portion attributable to operator
• Current year amounts added line-by-line to SFP and SPLOCI

• Prior year post-acquisition increase in equity increases RE or RS
• No NCIs or goodwill

• Participating party in JO without joint control also applies .20

treatment in separate financials (.27)

• If that party also has rights to assets and obligations for the liabilities in the
JO 16