Associates and joint arrangements - part 3
Taught by James Griffiths · AI tutor support included
You'll learn the key distinction between joint ventures and joint operations, and how to account for each under IFRS 11. This lesson focuses on identifying whether parties have rights to individual assets and liabilities (joint operation — proportional consolidation) or rights to net assets only (joint venture —
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In this lesson
- 0:00 Joint operations versus joint ventures
- 0:33 Key differences in rights and asset access
- 1:00 Separate company structures and accounting treatment
- 1:43 Equity accounting for joint ventures
- 2:31 Clive and Sue pipeline example
- 4:03 Identifying joint ventures in practice
- 5:01 Summary of associates and joint arrangements
About this lesson
equity accounting). You'll see how the presence of a separate company influences classification, why the operating agreement matters, and how joint ventures are treated identically to associates on both the statement of financial position and statement of profit or loss. This theory-focused content is essential for Strategic Business Reporting and builds on your understanding of group accounting structures.
Duration: 6m
Transcript
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