IFRS 11 Joint Arrangements establishes principles for financial reporting by entities that have an interest in arrangements that are controlled jointly (joint arrangements).
A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (ie activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.
IFRS 11 Joint Arrangements classifies joint arrangements into two types—joint operations and joint ventures:
IFRS 11 Joint Arrangements requires a joint operator to recognize and measure its share of the assets and liabilities (and recognize the related revenues and expenses) in accordance with IFRS Standards applicable to the particular assets, liabilities, revenues and expenses.
A joint venturer accounts for its interest in the joint venture using the equity method (see IAS 28).
IFRS 11 Joint Arrangements is Copyright: IFRS Foundation