International GAAP 2012: Generally Accepted Accounting Practice under International Financial Reporting Standards

Chapter 14

Joint arrangements (IFRS 11)

1 Introduction

1.1 The nature of joint arrangements

1.2 Development of IFRS 11

1.3 Future developments

1.3.1 Joint ventures

1.3.1.A Possible project on equity accounting

1.3.1.B Exposure Draft (ED/2011/4) – Investment Entities

1.3.2 Joint operations

2 Effective Date, Objective and Scope of IFRS 11

2.1 Effective date

2.2 Objective

2.3 Scope

2.3.1 Application by venture capital organisations and similar entities

3 Joint Arrangement

3.1 Unit of account

4 Joint Control

4.1 Relevant activities in a joint arrangement

4.1.1 Sequential activities

4.2 Rights to control collectively

4.2.1 Protective rights

4.2.2 Potential voting rights and joint control

4.2.3 Other evidence of joint control

4.2.4 Delegated decision-making

4.2.5 Related parties and de facto agents

4.2.6 Role of a government

4.3 Unanimous consent

4.3.1 Arrangements involving passive investors

4.3.2 Ultimate voting authority

4.3.3 Arbitration

4.3.4 Implicit joint control

4.3.5 De facto joint control vs. joint de facto control

4.4 Other practical issues with assessing joint control

4.4.1 Lease or a joint arrangement

4.4.2 Evaluate multiple agreements together

5 Classification of a Joint Arrangement: Joint Operations and Joint Ventures

5.1 Separate vehicle or not

5.1.1 Joint arrangement not structured through a separate vehicle

5.1.2 Joint arrangement structured through a separate vehicle

5.2 Legal form of the separate vehicle

5.3 Contractual terms

5.3.1 Guarantees

5.3.2 Contractual terms ...