Q1: What are the two types of joint arrangements under IFRS 11?
The two types of joint arrangements under IFRS 11 are joint operations and joint ventures. In a joint operation, the parties that have joint control have rights to the assets and obligations for the liabilities of the arrangement. In a joint venture, the parties that have joint control have rights to the net assets of the arrangement.
Q2: How does IFRS 11 require accounting for joint arrangements?
IFRS 11 requires that joint arrangements be accounted for using either the equity method or the proportionate consolidation method, depending on the type of joint arrangement. Under the equity method, the investor recognizes its share of the net assets of the joint arrangement in its statement of financial position and its share of the results of the joint arrangement in its statement of comprehensive income. Under the proportionate consolidation method, the investor recognizes its share of the assets, liabilities, revenues, and expenses of the joint arrangement in proportion to its interest in the arrangement.
Q3: What are the disclosure requirements under IFRS 11?
The disclosure requirements under IFRS 11 include information about the nature and extent of an entity's interests in joint arrangements, the accounting policies applied to those interests, and the significant terms and conditions of those arrangements.
Q4: Who is responsible for ensuring compliance with IFRS 11?
The entity's management is responsible for ensuring compliance with the accounting requirements of IFRS 11. Auditors are responsible for auditing the entity's compliance with those requirements and reporting on any identified deficiencies.
Q5: Are there any exceptions or exemptions to the requirements of IFRS 11?
IFRS 11 does not provide any exceptions or exemptions to its requirements. However, there may be specific industry or jurisdictional requirements that must be considered in determining the appropriate accounting treatment for joint arrangements.