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Section 3056, Joint Arrangements [Completed]

Effective date:

Fiscal years beginning on or after January 1, 2016.  Early adoption will be permitted.

Transitional provisions:

Effective for fiscal years beginning on or after January 1, 2016.  Early adoption will be permitted.

Last updated:

December 2015


Section 3056 will replace Section 3055, Interests in Joint Ventures.

Section 3056 will require investors to select one of three policy choices to account for interests in jointly controlled enterprises.  All jointly controlled enterprises may be accounted for using either the equity method or the cost method. A third option will permit an investor to make an accounting policy choice to undertake additional analysis of its interests in all jointly controlled enterprises.  For all such interests representing interests in individual assets and liabilities, the investor will be required to account for its interest in each of those assets and liabilities.  Alternatively, for those interests determined to represent interests in the net assets of jointly controlled enterprises, the investor will be required to account for its interests using the equity method or cost method.  Under the ED proposal, investors would have been required to follow the third policy choice described above and would not have been able to elect a policy choice of either cost or equity for all interests in jointly controlled enterprises. 

The AcSB agreed that no other significant changes to the ED proposals were required as a result of the feedback received from stakeholders.

Other developments

March 2015

On March 30, 2015, the AcSB issued a Basis of Conclusions document in respect of new Section 3056 and the related amendments to Section 3051 which sets out how the AcSB reached its conclusions. As well, it sets out significant matters arising from comments received in response to the ED and indicates how the Board dealt with the issues raised.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.