Ind AS 111: Joint Arrangements#
Types of Joint Arrangements#
Joint Operations
- Parties have rights to assets and obligations for liabilities
- Recognize assets, liabilities, revenues, expenses
- Proportionate sharing based on arrangement
Joint Ventures
- Parties have rights to net assets only
- Account for using equity method
- Recognize share of profit/loss
Classification#
Based on:
- Structure of arrangement
- Rights and obligations
- Contractual terms
Accounting Treatment#
Joint Operations#
- Recognize own share of:
- Assets held jointly
- Liabilities incurred jointly
- Revenue from sale of output
- Expenses incurred
Joint Ventures#
- Equity method accounting
- Investment initially at cost
- Share of profit/loss
- Dividends reduce carrying amount
Disclosure Requirements#
- Nature and extent of interests
- Description of arrangements
- Contingent liabilities
- Commitments related to arrangements