Point of View — Accounting for joint arrangements in the Energy and Resources sector

Published on: 09 Sep 2013

IFRS 11 Joint arrangements is now effective - effective date 1 January 2013 (1 January 2014 for EU preparers).

IFRS 11 focuses on rights to assets and obligations for liabilities of the parties to the arrangement rather than merely the structure of the arrangement.  the nature of those rights and obligations are the basis for classifying the arrangement as a joint venture or a joint operation.

Investors in joint venture entities can no longer use proportionate consolidation - this will impact financial data and ratios.  Investors in joint operations account for their share of assets, liabilities, revenue and expenses.


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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.