The objective of the project is to develop an IFRS that enhances the accounting for, and the quality of information being reported about, joint arrangements by establishing a principle-based approach to the accounting for joint arrangements and by improving the disclosure requirements to allow investors to gain a better understanding of the nature, extent and financial effects of the activities that an entity carries out through joint arrangements.

The principle-based approach developed in the project requires an entity to recognise its contractual rights and obligations arising from its joint arrangements. Such a principle-based approach will provide investors with greater clarity about an entity’s involvement in its joint arrangements by increasing the consistency, transparency and comparability of the reporting of these arrangements and it will do so by addressing principally two aspects of IAS 31 Interests in Joint Ventures:

• the structure of an arrangement will no longer be the most significant factor in determining the accounting, and
• accounting options will be eliminated.

Read more

Project news

10 June 2010 Observer notes posted for 10 June board meeting

20 May 2010 Observer notes posted for May board meeting

16 March 2010 Observer notes posted for March board meeting

Click here to see all previous project news on this project.

Last IASB meeting update

10 June 2010 At this meeting the Board tentatively decided that the measurement exception could be applied even if the investment held by the qualifying subsidiary was not an associate of that subsidiary.

Click here to view the full update and to access all previous IASB updates on this project.

Click here to listen to the IASB meetings audio playback.

Next discussed by the IASB

Redeliberations with the Board of the main areas of the standard have been finalised. Any forthcoming public meetings will aim to cover any sweep issues encountered by the staff when drafting the final IFRS.