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Joint Ventures

IASB meeting summaries and observer notes

 IASB / FASB 10 January 2011



Consolidation and joint arrangements

The IASB discussed a sweep issue that was raised by a number of Board members when reviewing the preballot draft of IAS 28 Investments in Associates and Joint Ventures. The Board considered whether the requirements in IAS 28 regarding potential voting rights when assessing significant influence should be changed to be consistent with the requirements developed in the consolidation project, but decided not to do so [13 in favour, 2 against]. However, the Board could address the issue as part of a comprehensive review of the definition and assessment of significant influence if such a project on associates were to be added to the Board's agenda after June 2011. The basis for conclusions on the revised IAS 28 will acknowledge the different treatment of potential voting rights when assessing significant influence and control, and will explain why the requirements of IAS 28 have not been changed, at least for the time being.

Joint arrangements - education session

The IASB held an education session on joint arrangements. The session aimed to provide an overview of the main requirements of the forthcoming IFRS dealing with the accounting for joint arrangements. Even though the project is at its final stage, the Board thought that it would be helpful to provide interested parties with a summary of the forthcoming IFRS.

Because this was purely an education session, the Board did not make any decisions.

Next steps

The Board will publish an IFRS on Joint Arrangements during the first quarter of 2011


Date: 1/20/2011