Joint arrangements

View this page in: Français

2 minutes on the Scope of the reporting entity with Michel Charbonneau

The IASB has released new guidance on accounting for joint arrangements in its new standard, IFRS 11, Joint Arrangements. Changes in the definitions have reduced the ‘types’ of joint arrangements to two: joint operations and joint ventures. The existing policy choice of proportionate consolidation for jointly controlled entities has been eliminated and under the new standard, equity accounting is mandatory for interests in joint ventures. Entities that participate in joint operations will follow accounting much like that for joint assets or joint operations today.

The new standard is effective for years beginning on or after January 1, 2013. Click here to learn more about this project and how it may impact your organization’s reporting, or contact us.