Advanced FA II, Chapter One: Accounting for Investment in Joint Arrangement and Associates

May 7, 2026

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This document is Chapter One of "Advanced FA II," focusing on the accounting for investments in joint arrangements and associates, as per IFRS 11 and IAS 28. It aims to define key terms like joint control and associate, and guide users in determining the type of joint arrangement and its appropriate accounting treatment. The chapter outlines that joint control entails a contractually agreed-upon sharing of control, leading to classifications as either a joint venture (accounted for with equity) or a joint operation (accounted for based on rights to assets and obligations for liabilities). The overarching objective of IFRS 11, as presented, is to establish principles for financial reporting by entities involved in jointly controlled arrangements. It emphasizes that the standard applies to all parties to a joint arrangement. Furthermore, the document touches upon strategic investments made by entities, broadly categorizing them into three types: investments where the investor controls the investee, investments where control is shared with third parties, and investments where the investor has significant influence over the investee. It also introduces the interaction of various IFRS standards (IFRS 9, 10, 11, 12, and IAS 28) in determining the accounting standards for investments in other entities, illustrating this with a decision-making flowchart based on the degree of influence over investees. The content is structured to provide clear learning objectives prior to diving into the detailed explanations and standard applications.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages88

Reading Time3 h 42 min

AccessFree to download

May 7, 2026

Upload by Aurora