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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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