Page 44 - UNISA Test 2 Slides - Joint Arranagemenst (Finac2)

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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