Page 20 - PowerPoint Presentation

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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