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IFRS 11 summary and timeline

A summary of IFRS 11 Joint Arrangements, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.

Summary

A joint arrangement is an arrangement of which two or more parties, bound by a contractual agreement, have joint control. Joint arrangements are classified, dependent on the controlling parties' rights and obligations, as either:

  • Joint operations – joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement.
  • Joint ventures – joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

A joint arrangement where the assets and liabilities relating to the arrangement are held in a separate vehicle can be a joint venture or joint operation; a joint arrangement that is not structured through a separate vehicle is a joint operation.

A joint operator recognises in its financial statements (including its separate financial statements):

  • assets, including its share of jointly held assets;
  • liabilities, including its share of jointly held liabilities;
  • revenue from the sale of its share of the output of the joint operation;
  • its share of the revenue from the sale of the output by the joint operation;
  • its expenses, including its share of any expenses incurred jointly.

A joint venturer should account for its investment using the equity method in accordance with IAS 28. In its separate financial statements, a joint venturer should account for its investment either at cost or in accordance with IFRS 9.

IFRS 11 does not include any disclosure requirements; these are included in IFRS 12 Disclosure of Interests in Other Entities.

Timeline

Date Update
12 December 2017 IASB issues Annual Improvements to IFRS Standards 2015 – 2017 Cycle (amendments to IFRS 11)
Effective for annual periods starting on or after 1 January 2019.
6 May 2014 IASB issues Accounting for Acquisitions of Interests in Joint Operations (amendments to IFRS 11)
Effective for annual periods starting on or after 1 January 2016. Amendments provide new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business.
28 June 2012 IASB issues Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12)
Effective for annual periods starting on or after 1 January 2013. Amendments clarify transition guidance and provide additional transition relief.
12 May 2011 IASB issues IFRS 11
Effective for annual periods starting on or after 1 January 2013.

Looking for the standard?

Practical guidance on this standard is now on our main IFRS 11 Joint Arrangements page, with links to eIFRS, the full text standard, eBooks and other resources.