Page 15 - PowerPoint Presentation

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
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