Page 21 - UNISA Test 2 Slides - Joint Arranagemenst (Finac2)

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.

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