PFRS 11 establishes principles for financial reporting by entities that have joint arrangements, which are classified as either joint operations or joint ventures. For joint operations, the parties with joint control have rights to assets and obligations for liabilities relating to the arrangement, and must recognize their share of assets, liabilities, revenues and expenses. For joint ventures, the parties have rights to net assets and must account for their interest using the equity method. The accounting treatment depends on whether the entity is a joint operator, joint venturer, or third party participating in the arrangement.
PFRS 11 establishes principles for financial reporting by entities that have joint arrangements, which are classified as either joint operations or joint ventures. For joint operations, the parties with joint control have rights to assets and obligations for liabilities relating to the arrangement, and must recognize their share of assets, liabilities, revenues and expenses. For joint ventures, the parties have rights to net assets and must account for their interest using the equity method. The accounting treatment depends on whether the entity is a joint operator, joint venturer, or third party participating in the arrangement.
PFRS 11 establishes principles for financial reporting by entities that have joint arrangements, which are classified as either joint operations or joint ventures. For joint operations, the parties with joint control have rights to assets and obligations for liabilities relating to the arrangement, and must recognize their share of assets, liabilities, revenues and expenses. For joint ventures, the parties have rights to net assets and must account for their interest using the equity method. The accounting treatment depends on whether the entity is a joint operator, joint venturer, or third party participating in the arrangement.
PFRS 11 establishes principles for financial reporting by entities that have joint arrangements, which are classified as either joint operations or joint ventures. For joint operations, the parties with joint control have rights to assets and obligations for liabilities relating to the arrangement, and must recognize their share of assets, liabilities, revenues and expenses. For joint ventures, the parties have rights to net assets and must account for their interest using the equity method. The accounting treatment depends on whether the entity is a joint operator, joint venturer, or third party participating in the arrangement.
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PFRS 11 Joint Arrangements PFRS 11 classifies joint arrangements into two types
—joint operations and joint ventures:
PFRS 11 establishes principles for financial reporting by entities that have an interest in in a joint operation, the parties that have joint arrangements that are controlled jointly (joint control of the arrangement (joint operators) have arrangements). rights to particular assets, and obligations for particular liabilities, relating to the arrangement; Joint arrangement and an arrangement of which two or more parties in a joint venture, the parties that have joint have joint control control of the arrangement (joint venturers) have rights to the net assets of the arrangement. Joint control PFRS 11 requires a joint operator to recognise and the contractually agreed sharing of control of an measure its share of the assets and liabilities (and arrangement, which exists only when decisions about the recognise the related revenues and expenses) in relevant activities require the unanimous consent of the accordance with IFRS Standards applicable to the parties sharing control particular assets, liabilities, revenues and expenses. Joint operation A joint venturer accounts for its interest in the joint a joint arrangement whereby the parties that venture using the equity method (see PAS 28). have joint control of the arrangement have rights to the Separate Financial Statements assets, and obligations for the liabilities, relating to the arrangement The accounting for joint arrangements in an entity's separate financial statements depends on the Joint venture involvement of the entity in that joint arrangement and a joint arrangement whereby the parties that the type of the joint arrangement: have joint control of the arrangement have rights to the If the entity is a joint operator or joint venturer it net assets of the arrangement shall account for its interest in: Joint venturer a joint operation in accordance with paragraphs a party to a joint venture that has joint control of 20-22; a joint venture in accordance with that joint venture paragraph 10 of PAS 27 Separate Financial Statements. [PFRS 11:26] Party to joint arrangement If the entity is a party that participates in, but does not an entity that participates in a joint arrangement, have joint control of, a joint arrangement shall account regardless of whether that entity has joint control of the for its interest in: arrangement a joint operation in accordance with paragraphs Separate vehicle 23; a joint venture in accordance with PFRS 9, unless the entity has significant influence over a separately identifiable financial structure, the joint venture, in which case it shall apply including separate legal entities or entities recognised by paragraph 10 of PAS 27 (as amended in 2011). statute, regardless of whether those entities have a legal [PFRS 11:27] personality Disclosure
There are no disclosures specified in PFRS 11.
Instead, PFRS 12 Disclosure of Interests in Other Entities outlines the disclosures required. Applicability and early adoption
When PFRS 11 is first applied, an entity need
only present the quantitative information required by paragraph 28(f) of PAS 8 for the annual period immediately preceding the first annual period for which the standard is applied [PFRS 11:C1B]
Special transitional provisions are included for:
[IFRS 11]
transition from proportionate consolidation to
the equity method for joint ventures
transition from the equity method to accounting
for assets and liabilities for joint operations
transition in an entity's separate financial
statements for a joint operation previously accounted for as an investment at cost.
An entity may apply PFRS 11 to an earlier
accounting period, but if doing so it must disclose the fact that is has early adopted the standard and also apply: [PFRS 11.Appendix C1]
