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