Grasping the Peculiarities of Accounting for Joint Arrangements in IFRS

This presentation describes the concepts underlying the application of Accounting and Reporting Standards for Joint Arrangement organizations in presenting general-purpose financial statements for these types of organizations. This session demonstrates the established principles for financial reporting by entities that have an interest in arrangements that are controlled jointly (joint arrangements). This session applies to all entities that are a party to joint arrangement. 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 (activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control. Financial statements for Joint Arrangement organizations are designed to meet the common information needs of external users of financial information about a Joint Arrangement. This presentation describes what this standard is in relation to Joint Arrangements and what unique and specific rules are used for financial statement presentation. This presentation is a resource that will help preparers of financial statements and accounting and auditing practitioners in exercising their professional judgment as to the implementation of the rules for Joint Arrangements. This session outlines an easy-to-understand step-by-step procedure for financial reporting by entities that have an interest in arrangements that are controlled jointly and what needs to be carefully considered. Course Key Concepts: Joint arrangements, IFRS, International Financial Reporting Standards, Financial statement, Reporting, Joint operations vs. Joint ventures, Separate financial statements, Types of joint arrangement, Financial statements of parties to a joint arrangement, The difference between a joint operation and joint venture, Consolidation of financial statements of parties to a joint arrangement.