Acquisition of an Interest in a Joint Operation (Amend IFRS 11)

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IFRS 11 Joint Arrangements relating to the acquisition of an interest in a joint operation that constitutes a business.

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The objective of the project is to improve comparability of reported financial information by providing guidance on how a joint operator accounts for the acquisition of an interest in a joint operation, in which the activity of the joint operation constitutes a business. 

The AcSB is participating in the activities of the project to ensure that Canadian entities’ financial reporting needs are considered by the IASB. The amendment will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting International Financial Reporting Standards (IFRSs) for publicly accountable enterprises.

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PROJECT NEWS

Final Amendments – Acquisition of an Interest in a Joint Operation
May 9, 2014. The IASB has issued narrow-scope amendments to IFRS 11 Joint Arrangements to add new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business.  The amendments are effective for annual periods beginning on or after January 1, 2016.

Response to the IASB – Acquisition of an Interest in a Joint Operation (Proposed amendment to IFRS 11)
On April 9, 2013, the AcSB submitted a comment letter to the IASB’s Exposure Draft issued in December 2012. The letter supports the proposal that a joint operator should account for the acquisition of an interest in a joint operation, in which the activity of the joint operation constitutes a business by applying IFRS 3 Business Combinations and other IFRSs, and disclose the relevant information specified in those IFRSs for business combinations. Read the AcSB letter posted by the IASB.

AcSB Exposure Draft – Acquisition of an Interest in a Joint Operation (Proposed amendment to IFRS 11)
January 29, 2013.  The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Canadian stakeholders are encouraged to submit their comments, on the form provided, by April 23, 2013.

Exposure Draft – Acquisition of an Interest in a Joint Operation (Proposed amendment to IFRS 11)
December 17, 2012. The IASB has issued an Exposure Draft proposing an amendment to IFRS 11 Joint Arrangements. Canadian stakeholders are encouraged to submit their comments to the IASB by April 23, 2013.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.