Page 18 - FAC4862 slides JAs and Revenue CM

JOINT ARRANGEMENTS

Exam Technique

• The following general mistakes that students make

during the application of IFRS 11 were noted in prior

tests and exams:

• Poor application of theory in discussion questions.

Remember to first state the theory, then apply and

conclude.

• Poor logical layout in discussion questions. Address the

question in a logical manner by first discussing joint

arrangements and joint control, the classification as

either joint operation or joint venture and then the legal

form and terms of the arrangement.

• Confusing the different accounting treatments of a joint

venture with a joint operation or vice versa.

• Neglecting to multiply the assets, liabilities and

transactions with the % proportionate share (i.e. 40%)

when accounting for the joint operation in the investor’s
separate financial statements. 18